§ 6-3. Notice to the guarantor in case of default and deferral

This section concerns the lender's duty to notify the guarantor (the person who has guaranteed someone else's debt). The lender must tell the guarantor in writing when the customer (kunde) defaults, and the notice must come within three months after the default began. Short-term default can be disregarded. This applies to default lasting no more than two months, which, together with earlier delays, does not give reason to believe the customer will have payment problems either. Example: the customer pays a single instalment late, but quickly puts it right and has otherwise paid as agreed. The lender can then refrain from notifying the guarantor.

Once the lender has sent a notice, the guarantor must be kept informed of how the matter develops. If the guarantor believes the matter has been resolved after a notified default, the duty to notify starts again if the customer later defaults on a new payment. In other words, the lender cannot assume that an old notice covers later defaults. The guarantor must also be notified in writing and without undue delay each time the lender and the customer agree to defer payment of instalments or interest beyond three months.

The fourth paragraph lists events that always trigger notice without unnecessary delay: the customer dies, debt negotiation or bankruptcy proceedings are opened in the estate, or the customer applies for debt negotiation under the Debt Settlement Act. There is no exception for short-term cases here.

This section must be read together with the other rules on personal guarantees (kausjon). Under § 6-2, the lender must notify the guarantor in writing when agreed security is not provided or lapses, or when the expected debt insurance is missing. Under § 6-4, the guarantor can at any time ask for information, including about the amount they are liable for, and about interest and costs. The notices in § 6-3 thus come from the lender unprompted, while § 6-4 is the guarantor's own right to ask. A notice of default gives the guarantor a basis for considering § 6-9, which allows the guarantor to pay off the guarantee in full or in part when the customer has defaulted more than insignificantly, or this must be expected. Under § 6-7, the guarantee liability is reduced when the customer pays interest and instalments.