Philippine Laws Library | BATASnatin - Filipino's Comprehensive Online Law Resource and Community

Switch to desktop Register Login

Guarantor May Proceed Against Principal Debtor

Guarantor May Proceed Against Principal Debtor

Art.  2071.  The  guarantor,  even  before  having  paid,  may proceed against the principal debtor:

(1) When he is sued for the payment;

(2) In case of insolvency of the principal debtor;

(3)  When  the  debtor  has  bound  himself  to  relieve  him from the guaranty within a specified period, and this period has expired;

(4) When the debt  has become demandable, by  reason of the expiration of the period for payment;

(5)  After  the  lapse  of  ten  years,  when  the  principal obligation has no fixed period for its maturity, unless it be of such nature that it cannot be extinguished except within a period longer than ten years;

(6)  If  there  are  reasonable  grounds  to  fear  that  the principal debtor intends to abscond;

(7)  If  the  principal  debtor  is  in  imminent  danger  of becoming insolvent.

In  all these cases, the action of the guarantor is to  obtain release  from  the  guaranty,  or  to  demand  a  security  that shall protect him from any proceedings by the creditor and from the danger of insolvency of the debtor. (1834a)

AS  A  GENERAL  RULE,  THE  GUARANTOR  HAS  NO  CAUSE  OF ACTION  AGAINST THE  DEBTOR  UNTIL  AFTER  THE  FORMER HAS   PAID   THE   OBLIGATION.  NONETHELESS,   THE   7 AFOREMENTIONED ARE INSTANCES WHEN THE GUARANTOR CAN PROCEED AGAINST THE DEBTOR REMEDY TO WHICH GUARANTOR ENTITLED

*Alternative remedies

1.   Release from the guaranty
2.   Demand  a  security  that  shall  protect  him  from  any proceeding


BATASnatin.com- The Best Philippine Law Library

Top Desktop version