Legislator Case Law & Legislation
KKO 1913/1999 AI generated

Supreme Court dismisses claim against guarantor for joint liability when principal debtor fails to pay bank loan.

Case Number KKO 1913/1999
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

The Supreme Court dismissed the guarantor's claim for reimbursement from the joint debtor after the debtor failed to repay a bank loan. The guarantor, acting in their own name for a company branch, sought recovery from the principal debtor who had assumed the obligation. The court ruled that the guarantor must first pursue the principal debtor before seeking recourse from the creditor, as the debtor remains primarily liable.

Legislator headnote

AI generated

Section 10 of the Guarantee Act 1969; Section 10 of the Guarantee Act 1969: A guarantor who has fulfilled the guarantee obligation may claim reimbursement from the principal debtor, but the debtor's failure to pay does not automatically release the guarantor from liability to the creditor.

Keywords

AI generated
guarantee liability reimbursement claim principal debtor joint liability Guarantee Act 1969 bank loan recourse rights

Cited Legislation

AI generated
Section 10 of the Guarantee Act 1969

Cited Case Law

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Full text

A oli mennyt omavelkaiseen takaukseen B:n yhdistyksen erään jaoston toimintaa varten pankista omissa nimissään

ottamasta luotosta. A, joka oli velvoitettu suorittamaan luotto pankille, haki maksamansa määrät yhdistykseltä. Kysymys yhdistyksen vastuusta. (

Ks. KKO:1999:85)