8. Who can act as a surety for a credit? What is the surety’s liability?

Any solvent persons can act as a surety for a credit. A surety assumes joint liability for the performance by borrower of its obligations under the credit agreement, unless the surety agreement provides for a subsidiary liability of surety.

Joint liability means that creditor may present claims under the credit against borrower and surety jointly or against any of them separately, for the full amount or part of the debt.

Subsidiary liability means that creditor may present claims against surety only after borrower refused or is unable to satisfy bank’s claims or fails to fully repay the debt.