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Joint Liability

WHAT DOES JOINT LIABILITY MEAN?

When multiple people are listed on a Keyhole deposit guarantee, it means they have joint liability for the guarantee. This means that everyone listed on the guarantee is responsible for paying the same debt, whether it concerns premium payments, fees, and/or final settlements. If one person is unable to pay their share of the debt, the other people on the guarantee become responsible for paying the entire debt.

What does it mean that we have joint liability for any outstanding amounts on a Keyhole deposit guarantee?

If there are multiple people on the same Keyhole deposit guarantee, all individuals have joint liability for any outstanding amounts. This means that everyone is responsible for paying the entire debt if one or more parties fail to pay.

What happens if one of the parties cannot or will not pay their share of the debt?

If one of the parties cannot or will not pay their share of the debt, the other parties are obligated to cover the entire debt.

What happens if the other parties cannot cover the outstanding debt?

If one party does not pay, and the other parties cannot cover the full amount, the case may be sent to collections. This means that all individuals on the guarantee could be affected by the collection process, even if some have paid their share of the debt. This could result in additional costs for all involved parties.