My question is in case of death of distributor, bank will honor the BG ?
2 years ago
we have distributor who is sole proprietor. As a credit control measure we do take bank guarantee from him . My question is in case of death of distributor, bank will honor the BG ? will bank argue that as distributor cease to exist and BG is null and void?
A.Hi,
The death of a guarantor does not extinguish his liabilities. Those who get his assets have to take the burden too. They are responsible for his debts and such obligations.
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The death of a guarantor does not extinguish his liabilities. Those who get his assets have to take the burden too. They are responsible for his debts and such obligations.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
From the bank’s point of view and the generally accepted norms, the death of a guarantor does not extinguish his liabilities. His legal heirs have liability upon his obligation if they inherit his property.
Please rate my answer
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From the bank’s point of view and the generally accepted norms, the death of a guarantor does not extinguish his liabilities. His legal heirs have liability upon his obligation if they inherit his property.
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