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How to deal with fraudulent guarantee

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How to deal with fraudulent guarantee


        

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  • 2024-05-26 00:00:15

    The fraudulent guarantee must provide evidence to prove the fact that the parties colluded and defrauded, and may claim exemption from the guarantee liability.

    The guarantor shall not bear civil liability under any of the following circumstances:

    (1) The parties to the main contract collude to defraud the guarantor of providing a guarantee;

    (2) The creditor of the main contract uses fraud, coercion and other means to make the guarantor provide a guarantee against his true intention.

    [Legal basis] Article 386 of the Civil Code states that the holder of the security interest has the priority to be paid with respect to the security property in accordance with the law when the debtor fails to pay the due debts or the parties agree to realize the security interest, except otherwise provided by the law.

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