Demand promisary note delivery letter

Guarantor question does not arise in Promissory Note.

State the facts clearly 

DPN and DPN Cover note are the documents signed by the Borrower/s. A guarantor does not sign these papers. Guarantor signs a separate paper in the form of Guarantee Deed. The liability of the Guarantor starts or commences with the Lender recalling the loan and demanding the loan from guarantor.

I have seen certain promissory notes where both borrower and guarantor jointly execute the promissory notes in favour of the lender stating their individual capacity

EX:  Mr.X..............in his capacity as a borrower and Mr.Y......in his capacity jointly and severally promise to pay a sum of Rs.............with interest.....% to Mr.Z on demand....

This is not relevant to query as the guarantor is bound by a separate agreement to lender and all the documents in between lender and borrower are not relevant to the borrower and it is his duty to sign such agreement after studying them.   Once such agreement is signed the presumption is that Guarantor satisfied himself with the conditions imposed on the borrower by the lender..  However, as a guarantor, he can demand either borrower or lender to provide him copies of all such documents in between borrower and lender for his record.

If the person they have guaranteed fails to meet their loan obligations and defaults, the guarantor will be responsible for the amount they have guaranteed.

This can put them at a great risk depending on the amount of assets or exposure they have on the mortgage.

A guarantor is a financial term describing an individual who promises to pay a borrower's debt in the event that the borrower defaults on their loan obligation. Guarantors pledge their own assets as collateral against the loans.

• Unlike a co-signer, a guarantor has no claim to the asset purchased by the borrower.
• If the borrower defaults on their loan, then the guarantor is liable for the outstanding obligation, which they must meet, otherwise, legal action may be brought against them.

Though there is no term called guarantor in demand promissory note, a surety can be obtained by the lender from the borrower in addition to the demand promissory note.

The term "guarantor" is often interchanged with the term "surety."

The provision that the surety's liability is coextensive with that of the principal debtor means that his liability is exactly the same as that of the principal debtor.

The guarantor on discharging the obligations steps into the shoes of the lender and have rights on such property, and can also recover the proportion amount with other signatories. The latest supreme court judgment throws more aspects and clarification on such obligations.  The SC ruled though IBC proceedings have commenced, the banker can proceed against directors who offered personal guarantee for the corporate loan.

The query is a peculiar one and common men like me could not understand the query and discussing about rights of guarantor.

The query was: Liability of guarantor in a DP note delivery letter  

I have not come across the term Liability in "DP Note delivery letter"

The presumption is that banks tank a memorandum while accepting equitable mortgage commencing with the sentence: "We have on...........date executed a promissory note in favour of Bank and offered the security of the below mentioned properties in schedule A with an intent to create equitable mortgage on these properties and delivered the documents stated in Schedule A.with our voluntary will and consent and these properties neither were offered security already to others nor will be offered security for others...............Bank can accept the properties as securities for the money already advanced or to be advanced from time to time.

If the securities are from a third party other than actual lenders in addition to signed memorandum, banks mandate obtaining the guarantee in individual capacity from the owners of the properties.

This memorandum might have been mistaken as the liability of the guarantor in a DP note delivery letter