An endorsement can be a document that serves as support.
An endorsement is a writing in which someone acts in response to the conduct of another person. This concept, which comes from the French aval , is often used in the field of politics .
In everyday language, the notion of endorsement is used as a synonym for support or endorsement . In this case, it is not necessary for the endorsement to materialize in a document or text, but rather it can be expressed in words or demonstrated with actions. For example: "The coach received the endorsement of the leadership and will remain in office beyond the result of the next game" , "The president gave his approval to the senator to launch his candidacy" , "If you are determined to launch Your own company has my endorsement .
Endorsement in the commercial field
In the commercial field, the guarantee is the signature that is placed at the bottom of a bill of exchange or other credit document and which implies that the signatory will be responsible for its payment in the event that it is not made by the person who has assumed said obligation in the first place.
The guarantee can be understood as a unilateral commitment to pay in favor of a third party . The beneficiary of the guarantee will receive the benefit if the debtor does not comply with the payment commitments. The person who signs the guarantee is known as the guarantor or guarantor .
The guarantor acts as a guarantor of other people's obligations (they only cover the payment of a loan and its interest when the original debtor does not comply with what corresponds to them). When the guarantor is a bank , it is called a bank guarantee .
Guarantors are usually important in mortgage loans.
Its use when applying for a mortgage loan
The application for a mortgage loan, on the other hand, usually entails the requirement of a guarantee when the client's employment situation is precarious or very unstable; An amount that exceeds 80% of the value of the home you wish to purchase is requested, according to official appraisal data; or the monthly fee would exceed 30% of the client's income.
In these cases, the guarantors are usually individuals who undertake to cover potential debts ( personal guarantee ) or movable or immovable property ( real guarantees ).
Guarantee on first demand
The guarantee at first demand or at first demand is a generally onerous and unilateral contract , through which the guarantor (also called guarantor , and which may be a savings bank, a bank, an insurance company or a credit institution) undertakes to support the debt (current or potential) of the principal, through the payment of a certain amount of money without exception.
The guarantor indemnifies the beneficiary of the contract at the moment in which the latter makes the pertinent notification, following the corresponding formal steps, regardless of the prior agreement, which is generally associated with obtaining a particular benefit, or the economic result. which emerges from the legal relationship described in the guarantee.
In other words, the first demand guarantee guarantees coverage of the debt without requiring that non-compliance be proven effectively, and independently of the contract. Payment can be requested by the beneficiary, forcing the guarantor to make it without the right to ask for explanations or verifications. Later, the guarantor will have the possibility of demanding compensation if the beneficiary had tried to defraud the guarantor by demanding money due to a situation not contemplated in the guarantee.
This contractual figure has its origin in German doctrine and arose to guarantee legal certainty in matters related to foreign trade. For Italian doctrine, it is also known as a pure guarantee contract , emphasizing the absence of conditions for its fulfillment.