Borgtocht

Suretyship is a form of personal security governed by Title 14 of Book 7 of the Civil Code. The surety undertakes to discharge the debt of another without itself being the principal debtor. The contract is formed by a unilateral declaration made by the surety to the creditor.

Suretyship is relevant because it enables a creditor to mitigate the risk of non-payment without the need to create a security interest in rem, such as a mortgage or a pledge. It is commonly used in loan agreements, leases and contracts for works.

In practice, a distinction is drawn between ordinary suretyship and joint and several suretyship. Following payment, the surety enjoys a right of recourse against the principal debtor and may, in certain circumstances, rely on the defences available to the principal debtor.