Under Dutch (Dutch) law, the Dutch civil code designates the guarantee as an agreement by which a third party undertakes a contractual creditor to comply with a debtor`s contractual obligations. Such a guarantee agreement is concluded between the surety company and the creditor. The debtor of the guaranteed commitment is not required to participate in such an agreement. It is even possible that such a guarantee agreement will be concluded without the debtor`s knowledge or agreement. Article 7:850 of the Dutch Civil Code is established: 1. A guarantee agreement is an agreement under which one of the parties (hereafter referred to as the guarantee) has committed to the other party (the “creditor”) to fulfil an obligation that a third party (the principal debtor) has owed or returned to the creditor. 2. For the validity of a guarantee agreement, it is not necessary for the principal debtor to know the existence of the guarantee in question. 3. The legal provisions relating to joint and several bonds apply to a bonding contract, as long as the provisions of this security do not deviate from it. With regard to the nature of the commitment guaranteed by a guarantee agreement under Dutch law, Article 7:854 of the Dutch Civil Code states that if the principal debtor`s guaranteed commitment relates to a benefit other than the payment of a sum of money, the surety contract is considered a guarantee of the creditor`s claim on the sum of money.

which is attributable to the principal debtor if it has not fulfilled its primary obligation to the creditor, unless the surety agreement expressly provides for something else. [2] CFI is the official provider of the Certified Banking – Credit Analyst (CBCA) ™CBCA™ certificationThe certified Banking – Credit Analyst (CBCA) accreditation ™ is a global standard for credit analysts who cover finance, accounting, credit analysis, cash flow analysis, federal modeling, credit repayments and much more. Certification program designed to turn everyone into a top-notch financial analyst. A guaranteed debt may contain a security agreement under its terms. When a security agreement lists a commercial property as collateral, the lender can file a UCC-1 return that will serve as a guarantee for the property. The security agreement should also specify a repayment plan. Pending the completion of the repayment, the guarantee agreement grants the lender a security interest. Secure transactions are essential to a company`s growth. Almost all individuals and organizations need to take on debts at some point, but attracting creditors on board can be a struggle. Security interests ensure the security of the creditor, who then provides a particular debtor with the means he or she needs most. In addition, the debtor is more likely to obtain a low interest rate if the creditor has some form of guarantee. Security agreements play a central role in this agreement by outlining the conditions under which debts can be guaranteed and what happens in the event of default by the debtor.