A surety agreement can make a guarantor responsible to the creditor for another person’s obligation in full or in part. The actual exposure depends on the written agreement, the secured obligation, any limit of liability and the events affecting that obligation.
What a surety covers
A surety may secure monetary or non-monetary obligations, including a future obligation. The agreement must be in writing. A reference to the underlying contract can be sufficient to identify the secured obligation where the statutory requirements are met.
Scope of liability
Upon the debtor’s non-performance, the guarantor and debtor are jointly liable to the creditor unless the law or surety agreement creates subsidiary liability. Unless the agreement provides otherwise, the guarantor’s liability covers the same extent as the debtor’s, including interest, recovery costs and losses caused by non-performance.
What to review
- the written surety agreement and all amendments;
- the underlying loan, supply or other secured obligation;
- the agreed limit, term and type of liability;
- the creditor’s calculation and notices;
- available objections and any performance already made by the debtor or guarantor.
Rights after payment
A guarantor who performs an obligation may obtain statutory rights connected with that performance. The exact consequences, including any recourse claim, should be evaluated from the agreement and applicable law.
Legal framework
Key provisions are Articles 361–367 of the Russian Civil Code, including Articles 361, 362 and 363. This material is general information and does not decide a particular guarantor dispute.