§ 6-13. The guarantor's claim against the borrower
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
In brief
- The guarantor can demand payment from the borrower to the extent that the guarantor is liable to the lender.
- The borrower's later payment to the lender reduces the guarantor's claim, unless otherwise agreed.
- If the guarantor has paid off the debt, it does not help the borrower to pay the lender afterwards.
The text of the law (unofficial translation)
§ 6-13. The guarantor's claim against the credit customer
What does this mean?
This section gives the guarantor a separate claim against the borrower (the credit customer, kredittkunden). The guarantor can demand money from the borrower to the extent that the guarantor is liable to the lender. The right arises in two situations. Either the conditions in § 3-51 first paragraph are met, meaning that the lender has grounds for cancellation of the contract (heving). Or it is clear, because of the borrower's conduct or a serious failure in their ability to pay, that there will be a material breach of the loan. The grounds for cancellation in § 3-51 first paragraph include, among other things, material breach and the opening of bankruptcy proceedings against the customer.
After the guarantor has made a demand on the borrower, the borrower can still pay the lender. The guarantor's claim is then reduced to the same extent as the liability under the personal guarantee, unless the guarantor and the borrower have agreed otherwise. The borrower still cannot escape the costs the guarantor has had in collecting the claim. If the guarantor has paid off the debt to the lender under § 6-9 and then made a demand on the borrower, it does not help the borrower to pay the lender afterwards. The guarantor's claim then stands.
This section mirrors § 6-7. There, the liability under the personal guarantee is reduced when the borrower pays the lender, and the second paragraph here lets the guarantor's claim follow the same reduction. § 6-9 gives the guarantor the right to pay off the debt in the event of breach. When paying off the debt, the guarantor takes over, under general rules, the credit agreement (kredittavtale) and the security, but the lender can prevent this by releasing the guarantor from liability equal to what paying off the debt would have released him from.
Example: The guarantor has paid off the debt to the lender and then made a demand on the borrower. The borrower then pays the lender. The guarantor can still maintain the claim against the borrower.