Personal Suretyship Rules

A personal suretyship differs from a surety deposit due to the joint and several liability (art. 7:850 BW). The suretyship must be in writing, specifying the maximum amount and duration. Banks often require joint sureties for mortgages. Spouses must both sign (art. 1:88 BW). Limitations: no suretyship for consumer purchase without right to advice. Discharge from suretyship possible upon performance of the principal debt. Court of Appeal checks reasonableness. Practice: always a suretyship agreement with unilateral right of recourse and notification obligation. In the event of bankruptcy of the principal debtor, the right of recourse applies.