Non-commercial guarantors in the three-party loan and guarantee context get the benefit of the protections offered by the Etridge code. A lender makes a loan to B, and C guarantees to the lender that B will perform the obligations under the loan agreement. B and C are often spouses or co-habitees and give the lender a charge over the jointly-owned family home as security. In these cases, lenders must take reasonable steps to ensure that the guarantor understands the extent of their liability, the nature of the transaction and the practical risks that they incur by giving the guarantor … (more)
[Hong Kong Land Law Blog, 26 June 2025]
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