Limited Suretyship – Time
This Suretyship can be used 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 taking on personal liability for the debt. This payment guarantee limits the guarantor’s liability by imposing a termination date, whereafter the suretyship obligation will either end or be limited to the debt outstanding on the termination date.
Summary This Suretyship document may be used 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 personal liability for the debt. This suretyship limits the surety’s liability by imposing a termination date, whereafter the suretyship obligation will either end or be limited to the debt outstanding on the termination date.
Why do I need a Suretyship? The Limited Suretyship affords a supplier or creditor additional security. In the event that the customer or debtor defaults in payment, the creditor may use the suretyship to claim payment from the surety. If your business has customers / debtors that are likely to owe money, for example the provision of goods and services on credit, then this Suretyship may be considered to reduce the risk of non-payment. Particularly if your customers or debtors are legal entities such as companies or trusts, then the directors, shareholders or trustees can be requested to sign personal suretyships guaranteeing the company’s or trust’s debt. But it can also be used by someone standing surety for their spouse, parent, child, friend or partner.
What does the Suretyship look like? This template suretyship can be printed onto two pages.
What do you need to do to use this sample Suretyship?
- Read the suretyship document to ensure that it suits your requirements. Make changes as required.
- Complete the relevant details, add more sureties if needed, and get the surety or sureties to sign.
This is a limited payment guarantee. We also have an Unlimited Suretyship if you need the guarantors to sign an unlimited payment undertaking.
A specialist’s advice should be sought, specifically if the underlying debt is subject to the National Credit Act 34 of 2005.
Also viewed: Customer Acknowledgement of Payment Terms
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