In the Brazilian business environment, bank guarantees are important for the solidity of the market, as they offer security and liquidity. Through this guarantee, a financial institution becomes a guarantor, replacing a partner or shareholder of the company for a fee. In situations of judicial recovery (RJ), questions arise about the status of the guarantor’s credits, who, upon paying off the debt, becomes a creditor of the company in RJ. Legally, he assumes the position of the original creditor with the same rights. If the debt is contracted after the RJ, the guarantor is considered to have priority and maintains the right of action. If it is earlier, the credit must be paid according to a recovery plan negotiated among the creditors. Thus, in bank letters of guarantee, the guarantor inherits the position of the original creditor.
Marina Serachiani Clemente and Nathalia Nunes from Felsberg Advogados covered this for the newspaper Valor Econômico with the article “STJ’s new position on letters of guarantee”.
Check out the full material (in Portuguese and available only to subscribers) here.
