LIMITED SURETYSHIP - AMOUNT
Summary
This Limited Suretyship may be considered for use where a debt is owed or may in the future be owed by a person, and additional security is required in the form of another person signing in suretyship, and thereby taking on liability for the debt. This suretyship strives to limit the surety’s liability to the maximum amount agreed to in the suretyship.
More information
Why do I need a Limited Suretyship?
The Limited Suretyship strives to afford the creditor additional security. In the event that the debtor defaults in payment, this suretyship may be used to pursue the surety for payment.
What type of business should use a Limited Suretyship?
If your business has debtors that owe money, this Limited Suretyship may be considered for use to reduce your risk. Particularly if the debtors are legal entities such as companies or trusts, the directors / shareholders / trustees may be requested to sign personal suretyships guaranteeing the company’s / trust’s debt
What does the Limited Suretyship look like?
- The agreement can be printed onto one A4 page.
What do you need to do to use the Limited Suretyship?
- Read the document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details, and get the surety/ies to sign.
Also known as:
Please note: this transaction may be subject to the National Credit Act 34 of 2005, in which event an expert’s advice should be sought.
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