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Limited Surety Amount Template - South Africa
R 360.85
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Limited Surety Amount Template - South Africa
Summary A Suretyship may be used where a debt is owed or may in the future be owed by someone, and additional security is required in the form of another person signing a guarantee, accepting personal liability for the debt. This suretyship limits the surety’s liability to the maximum amount agreed to in the suretyship.
Why do I need a Suretyship? The Limited Suretyship gives a supplier or creditor additional security. If the customer or debtor defaults, the creditor may use the suretyship to claim from the surety. If your business has customers or debtors that are likely to owe money, for example the provision of goods and services on credit, then a 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 guaranteeing a debt owed by their spouse, parent, child, friend or partner.
What does the Suretyship look like? This template limited suretyship - amount can be printed onto two pages.
What do you need to do to use this Suretyship?
Read the template 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.
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