Subsection 1: Effects of the guarantee between the creditor and the guarantor

The professional creditor is obliged, before 31 March each year and at its own expense, to inform any guarantor who is a natural person of the amount of the principal of the debt, interest and other accessories outstanding at 31 December of the previous year in respect of the guaranteed obligation, on pain of forfeiture of the guarantee for interest and penalties due since the date of the previous information…

The professional creditor is required to inform any guarantor who is a natural person of the principal debtor’s default from the first payment incident not regularised within one month of the due date of this payment, on pain of forfeiture of the guarantee of interest and penalties accrued between the date of this incident and the date on which he was informed. In relations between the creditor and the guarantor,…

Within one month of receipt, the guarantor shall, at its own expense, communicate to the sub-guarantor natural person the information it has received pursuant to articles 2302 and 2303.

The benefit of discussion allows the guarantor to oblige the creditor to sue the principal debtor first. Neither a guarantor held jointly and severally with the debtor, nor a guarantor who has waived this benefit, nor a judicial guarantor may avail themselves of this benefit.

The benefit of discussion must be invoked by the guarantor from the first proceedings brought against him. The guarantor must indicate to the creditor the debtor’s assets that may be seized, which may not be disputed assets or assets subject to a special security interest in favour of a third party. If the creditor fails to pursue the debtor, he is liable to the guarantor for the debtor’s insolvency up…

Where several persons have stood surety for the same debt, they are each liable for the whole. Nevertheless, the one who is being sued may set up the benefit of division against the creditor. The creditor is then obliged to divide his proceedings and can only claim his share of the debt. Guarantors who are jointly and severally liable may not claim the benefit of division, nor guarantors who have…

The benefit of division must be invoked by the guarantor as soon as the first proceedings are brought against it. It can only be invoked between solvent guarantors. The insolvency of a guarantor on the day the division is invoked is borne by those who are solvent. The guarantor who requested the division can no longer be sued because of the insolvency of another, which occurred subsequently.

If the creditor has divided his action of his own accord, he can no longer go back on that division, even if there were insolvent sureties at the time of the action.

The creditor’s action may not have the effect of depriving the natural person guarantor of the minimum resources set out in Article L. 731-2 of the French Consumer Code.