§ 6-8. Debt insurance and liability under a personal guarantee
Machine-translated from Norwegian. The Norwegian text is the one that applies. Read the original in Norwegian.Norsk English العربية Polski Українська
The text of the law (unofficial translation)
§ 6-8. Debt insurance
(1) If debt insurance (gjeldsforsikring) has been taken out for the debt liability under the credit agreement (kredittavtale) and the insured event occurs, the liability under the personal guarantee (kausjon) is reduced to the same extent as if the credit customer had made the payment themselves.
(2) No right of recourse (regress) may be claimed against the guarantor for payment of debt insurance.
What does this mean?
This section sets out what debt insurance means for the guarantor. If the loan is covered by debt insurance and the insured event occurs, the liability under the personal guarantee is reduced, as if the borrower had paid themselves. Nor can the payout be claimed back from the guarantor (right of recourse means that the person who has paid claims the money back from someone else). The provision is one of several on when liability under a personal guarantee is reduced, alongside § 6-7 on payments, and it comes before § 6-9 on the release period.