glossario

A guarantee is designed to protect the lender if the customer cannot repay the loan. Guarantees are divided into real and personal ones. Real guarantees - pledges and liens - are rights on things. A pledge is for moveable property, such as jewellery, while a lien is for real estate, such as houses, or registered moveable property, such as boats and cars. If the customer cannot repay the loan, the lender can reclaim the amount by selling what was put up as collateral. A personal guarantee is linked to the assets of the subject that provides it. The most common form is a surety.