A loan guarantor is a person who is ready to take on the responsibility of repaying the loan if the borrower is unable to do so. In this case, the liability of the guarantor is equal to the obligations of the debtor himself. The guarantor also puts his property at risk in the event of credit debts.

Responsibility of the guarantor under the loan agreement

Often, a loan agreement provides for subsidiary liability of the guarantor. In this case, an unscrupulous borrower may simply stop repaying the loan, because the guarantor will be obliged to pay this debt according to the terms of the agreement. Of course, in the future he can claim the amount paid from the debtor in court, but such paperwork takes a lot of time.

The responsibility of the guarantor, as well as the person who issued the loan, involves compensation not only for the loan amount, but also for losses incurred by the bank, fines and penalties imposed. Reimbursement of court costs is also expected in case of paperwork to collect a loan from the debtor.

When a person agrees to act as a guarantor, for his own safety he must insure his property. Better yet, re-register part of it in the name of immediate relatives.

To minimize the liability of the guarantor in case of non-payment of the loan by the borrower, it is necessary to have some information and documents, namely:

• be informed about the terms of the loan agreement, the loan amount, interest and repayment terms;
• request a notarized copy of the passport from the debtor.

There is also liability of the guarantor in the event of the death of the borrower. After the death of a person, the process of formalizing the inheritance occurs. Until its completion, the credit institution cannot present claims to the guarantor to collect the unpaid debt. And if there is a so-called inherited estate, then the debts remaining after the death of the borrower at the court request of the bank are repaid at its expense.

The liability of the guarantor in court is unacceptable, since he has no relation to the inheritance. The size of the possible claim from the guarantor can only be equal to the size of the inheritance. But there are cases when there is no inheritance. This means that the loan obligation is terminated, as well as the responsibility of the guarantor.

When lending large sums of money, banks resort to attracting a person who is ready to guarantee the payment of the debt. The guarantor's liability for the loan will extend to him until the entire amount of loan funds and interest is fully repaid.

Who is a guarantor

A guarantor is a person who guarantees that the borrower will fulfill his loan obligations to the bank. Depending on the terms of the agreement, he undertakes to partially or fully repay the debt, all accumulated fines and interest of the debtor in the event of his insolvency.

A guarantee implies joint liability of the borrower and the guarantor to the bank in the event of a violation of the loan agreement.

Types of joint responsibility

Joint liability to the creditor can take two forms:

1. solidary;
2. subsidiary.

Joint responsibility

This type assumes equal responsibility for non-payment of the loan by both the borrower and his guarantor. If there are delays in payments or their complete absence, the bank has the right to contact the guarantor and demand that he fulfill his obligations to repay the debt.

Banks often offer to sign a joint and several liability agreement. This agreement protects the interests of the lender and is additional insurance against non-payment of the loan.

Vicarious liability

This type assumes that the bank can contact the guarantor and demand that he partially or fully assume obligations to repay the loan, only after proving the financial insolvency of the borrower.

In this case, the bank cannot make any claims against the guarantor until the court makes a decision on the insolvency of the borrower. The bank must independently go to court and only after making an appropriate decision can it turn to the guarantor.

It is not profitable for the bank to issue funds under a subsidiary liability agreement. If the borrower disappears, it is impossible to prove his insolvency in court; accordingly, no claims can be brought against the guarantor.

Why are guarantors needed?

A guarantor is a kind of safety net for a financial institution that issues loans. The larger the requested loan amount, the more guarantors the bank may require.

Benefits of having a guarantor:

1. Guarantees. When issuing funds, the bank can be sure that the funds will be returned to it regardless of the financial situation of the borrower.
2. Conditions. If there is a guarantor, the bank is more willing to reduce the interest rate on the loan, due to the presence of guarantees for debt payment.
3. Amount of credit. Having a guarantor will not increase the possible loan amount. This parameter depends on the borrower’s income; the financial condition of the guarantor is not taken into account.

Conditions

The conditions for the participation of the guarantor in the loan agreement are as follows:

1. The guarantor signs an agreement that assumes responsibility for paying off the debt if the debtor cannot do so on his own.
2. The guarantor is not a co-borrower on the loan and does not receive any profit from it. He does not have the right to dispose of financial assets, movable and immovable property received as a result of the transaction.
3. The type of joint liability is chosen by the bank and is obliged to communicate the terms of liability of both parties when signing the guarantee agreement.
4. The bank may require the borrower to provide not one, but several guarantors at the same time when issuing a large loan.
5. Depending on the form of mutual responsibility for the loan, the guarantor may be required to pay not only the body of the loan, but also additional interest, fines, and legal costs.
6. By vouching for the borrower, the guarantor assumes his responsibility for repaying the loan, regardless of his financial situation.

The danger of surety

The dangers of guaranteeing are as follows:

1. When signing a guarantee agreement, the guarantor himself does not receive the rights to manage the funds received by the borrower from the bank.
2. Most banks resort to contacting a guarantor some time after the debtor has fallen behind on mandatory loan payments. During the time the bank turns to the guarantor, interest and fines will be added to the loan body, which can lead to an almost doubling of the debt.
3. If the bank goes to court, the debtor and his guarantor bear equal responsibility. The guarantor does not have any concessions when fulfilling obligations under the guarantee agreement.
4. In the absence of the ability to fulfill obligations to the lender, the guarantor’s credit history deteriorates, which may cause difficulties in obtaining another loan.

Rights of the guarantor

Despite the unprofitability of the guarantee agreement, the guarantor has rights, knowledge of which will help mitigate the degree of responsibility if the borrower encounters financial difficulties:

1. By signing a surety agreement, the guarantor agrees only to the terms and conditions that were specified in the document. When making a transaction, the loan agreement describes the interest rate on the loan; if the bank changes it unilaterally, the guarantee agreement is canceled. If the rate changes, the bank must enter into an agreement with the guarantor and obtain his written consent to the new conditions.
2. Changing the terms and the person of the debtor by the creditor removes responsibility from the guarantor. When changing the terms of the loan or transferring the debt to a third party, the bank is obliged to inform the guarantor about this and obtain consent to the new conditions.
3. When the guarantor pays the debt and loan costs, he receives the right to demand compensation from the debtor. In this case, the right to collect the debt passes to the guarantor; through the court, he can claim from the borrower not only the loan amount, but also all the interest on it, the amount of fines and legal costs.

How to protect yourself

Friends or acquaintances may ask you to become a guarantor when they receive a loan from a bank.

Before agreeing to become a guarantor, you should weigh the possible risks:

1. Ability to make payments independently. When agreeing to become a guarantor, you should calculate the obligatory payments on the loan and weigh your financial ability to pay them yourself. If the amount causes serious damage to the budget, then you should refuse such an agreement.
2. Guarantees from the borrower. Before becoming a guarantor, it is worth assessing the borrower’s financial situation and assessing his ability to repay the debt on his own. If there is no confidence in the borrower, then there is a high probability that the loan will have to be repaid by the guarantor himself. Before signing the agreement, you should contact the borrower with a request for additional guarantees in case he cannot pay the debt.
3. Agreement. If possible, you should ask the bank to enter into a subsidiary liability agreement. Banks are reluctant to provide such conditions; this increases their risks and reduces the risks of the guarantor.
4. Carefully read the terms and conditions. When signing the agreement, you should carefully study all its clauses and ask the bank employee to clarify any unclear ones.
5. Do not agree to changes in loan terms. Increasing the loan term and transferring the debt to another person will entail an additional increase in the loan rate. If the guarantor has not signed an agreement to change, then he is not liable under this agreement.
6. Full fulfillment of obligations to the bank if necessary. If the borrower was unable to pay the debt, the guarantor should fully fulfill his obligations so as not to increase the debt through fines. After full payment, you should contact the borrower with a demand to fully compensate for material damage.

Video about the consequences of bail

Drawing up a loan agreement with a guarantee today is far from a rare occurrence. Read our article about what responsibility a loan guarantor bears, what obligations are assigned to him in the event of failure to fulfill the loan agreement by the borrower, and whether the guarantor can file a lawsuit against the borrower.

Loan guarantee is a pressing issue in the Russian banking structure. On the one hand, the presence of a guarantor for a loan borrower minimizes the financial risks associated with possible non-payment of the loan; on the other hand, the guarantor assumes obligations for debt payments if the borrower violates the terms of the loan agreement.

Important! The guarantor has no rights to the property that the borrower acquires on credit, however, he also bears full obligations to the lender (Article 361 of the Civil Code of the Russian Federation).

The presence of a guarantor in a loan obligation is formalized by a guarantee agreement; the guarantor’s liability begins from the moment the agreement is signed between him and the creditor bank. A surety agreement may contain two types of joint liability:

• joint liability - implies equal obligations of the guarantor and the borrower;
• - occurs when it is proven that the borrower does not have the ability to pay the loan.

If the borrower had several guarantors when applying for a loan, each of them will be fully responsible for the fulfillment of debt obligations to the bank. If the debtor violates the terms of the loan agreement, the banking organization has the right to present the following demands to the guarantor:

• payment of the principal amount;
• payment of interest on the loan;
• payment of fines and penalties for unpaid payments;
• payment of legal fees.

The bank has the right to demand from the guarantor the fulfillment of obligations under the unpaid loan through the seizure of real estate. Exceptions are cases where the guarantor purchases the only home under a mortgage.

Loan liability: guarantor risks

By taking on the burden of guaranteeing a loan obligation, the guarantor acquires:

1. Financial risks: in addition to repaying the principal debt on the loan, the guarantor is responsible for paying interest, fines and penalties.
2. Bad credit history: the presence of arrears on a loan negatively affects the credit history of both the borrower and the guarantor.
3. Limitation of the guarantor’s ability to obtain his own loan: the bank carefully monitors all credit histories and, if there are obligations under the guarantee agreement, calculates the credit limit taking into account the existing circumstances, that is, the guarantor may not receive the desired amount from the bank, even if his financial capabilities fully allow it, until the guarantee is terminated due to full repayment of the loan.
4. Risk of loss of real or movable property. In the event of refusal to fulfill obligations under the loan agreement by the borrower and the guarantor, in accordance with a court decision, the property of the guarantor may be seized in an amount sufficient to repay the debt.

In order to remove yourself as a guarantor, you must obtain the consent of the bank and the borrower. At the same time, the guarantee does not terminate in connection with the divorce of the spouses (if at the time of execution of the loan agreement one of the spouses was the guarantor of the other).

Guarantee agreement: rights of the loan guarantor

In accordance with Art. 365 of the Civil Code of the Russian Federation, in addition to obligations, the guarantor has a number of rights aimed at protecting his legitimate interests. Thus, if the guarantor fulfills all loan obligations, he acquires the rights of the creditor in full, that is, the guarantor has the right to demand from the debtor payment of all losses incurred, including payment of the principal debt on the loan, interest on the use of funds, fines and penalties. In addition, the guarantor may be released from fulfilling loan obligations in the following cases:

• lack of written consent of the guarantor in the terms of lending, changed at the discretion of the bank;
• transfer by the bank of a debt to another person without the written consent of the guarantor;
• expiration of the period specified in the guarantee agreement;
• termination of the borrower organization due to liquidation;
• death of the borrower.

Important! The obligations of the guarantor are inherited. The fulfillment of debt obligations by the heirs is carried out after they have assumed the rights of inheritance and the amount of the debt does not exceed the value of the inherited property.

The guarantor, who has fulfilled the loan obligations in full, has the right to file a lawsuit against the debtor demanding reimbursement of expenses incurred. If the borrower and guarantor do not have personal property, official employment and a stable monthly income, bailiffs and banks will not be able to demand payment of the loan debt. As for credit debtors, who also pay, they also have some rights in this matter. For example, the total amount of deductions for all enforcement documents cannot exceed 50% of the debtor’s salary and other income. If the debtor pays alimony, the maximum amount of payments under writs of execution cannot exceed 70% of the debtor's total income. Also, Russian legislation provides for the impossibility of foreclosure on the debtor’s property that was acquired during the spouses’ cohabitation. Joint ownership of property must be documented. If the fact of incapacity or limited legal capacity of the debtor (borrower and guarantor) is proven, the latter is released from liability for failure to fulfill loan obligations, and his rights and interests are represented by a legal representative.

Limitation periods for unpaid loans

In accordance with the Civil Code of the Russian Federation, the guarantor's liability for loan obligations lasts for the period specified in the guarantee agreement. However, as practice shows, the contract may contain:

• the exact expiration date of the agreement is not specified - in this case, the guarantee is terminated if the bank does not file a claim in court within 12 months from the date of maturity of the debt;
• the exact term for payment of the loan is not specified - in this case, the guarantee is terminated if, within 24 months from the date of signing the guarantee agreement, the bank does not file a lawsuit to collect the debt.

Writs of execution for court decisions and court orders regarding non-fulfillment of loan obligations can be submitted within up to 3 years.

A friend asked me to be a guarantor for his loan. I agreed to help, but he suddenly stopped paying the loan. I received a summons to appear in court, and I am afraid that the bailiffs will deduct money from my salary. What can be done?

For many Russians, the help of guarantors is perhaps the only opportunity to get a loan. Since the bank is not required by law to issue loans to every applicant, the borrower must confirm as much as possible his solvency and ability to repay the loan. Of course, the bank actively uses any means to ensure the return of the money loaned. This is why surety is so widely used.

Unfortunately, most Russians willingly accommodate their friends or relatives and, without looking, sign a guarantee agreement, “because I trust him,” “well, he will pay.” We recommend being extremely careful when agreeing to a loan guarantee and here’s why.

The guarantee has one main consequence - if the borrower for any reason cannot pay the loan, the bank will collect his debt from the guarantor. In this case, the guarantor is obliged to be responsible for both the repayment of the principal debt on the loan and for non-payment of interest on the loan, as well as reimburse the bank’s legal costs (state fees). The law stipulates that the borrower and his guarantors are jointly and severally liable to the bank for non-repayment of the loan. This means that the court decision will not stipulate who and what specific part of the debt is obliged to pay the bank.

Solidarity means with anyone and in any proportions. Theoretically, 100% of the debt can be recovered from one of the guarantors.

In practice, it turns out that in case of joint collection, the debt is repaid by those borrowers and guarantors from whom the bailiffs found regular income or property. It also happens that the borrower himself has an unofficial job or irregular income, and has no property. It turns out that in this case the guarantors pay the bank for it. Of course, bailiffs have the right to foreclose on the guarantor’s money, withhold part of his salary, seize property, and prohibit travel abroad.

If you have signed a surety agreement and your borrower has stopped paying, we recommend the following steps.

Under no circumstances should you ignore court hearings to collect debt under a loan agreement.

Be sure to obtain subpoenas because if you refuse to receive them or return an expired subpoena, you will still be considered given notice of the hearing date. In this case, the court will make a decision in absentia, and you will learn about the problem only after the bailiffs begin to bother you.

Upon receipt of the bank's statement of claim:

• carefully study the documents sent to you from the court. If you were only sent a summons, be sure to go to court and read the case materials (take pictures of them with a digital camera or phone). Judges cannot refuse to familiarize you with the case and, as a rule, immediately when you submit an application for familiarization, they give you the opportunity to look at the case;
• note, were any illegal commissions and payments included in the loan agreement?. If there were such payments, you can object to them and declare the conditions for their payment invalid. All amounts of illegal commissions must be excluded from the amount of the debt, and if the borrower actually paid these commissions, they must be returned to him;
• look, whether the borrower has drawn up an insurance contract(for example, from disability, job loss). If there was such insurance and the borrower stopped paying precisely because of an insured event, we recommend filing a petition in court to involve the insurance company in the case. If an insured event occurs under a valid insurance policy, the insurance company will have to pay insurance compensation. Perhaps it will be able to cover the entire debt or some part of it;
• note, whether any additional agreement to the loan agreement was concluded between the borrower and the bank, which you don't know about. If such an agreement was signed without your consent, and it increases the amount of your liability as a guarantor or entails other unfavorable consequences for you, you have the right, with reference to Article 367 of the Civil Code of the Russian Federation, to declare the termination of the guarantee;
• check the debt calculation provided by the bank. Have all borrower payments been taken into account? How did the bank write off the incoming payments? If they went to pay penalties or commissions, this is illegal, since it violates the order of repayment of obligations established by law (first the costs of obtaining fulfillment, then interest on the loan, then the principal debt, then everything else). If the bank has assessed very large penalties or interest, file a petition to reduce the penalty under Article 333 of the Civil Code of the Russian Federation;

Be sure to prepare yours for court written explanations and alternative calculation of debt. Remember that your interests in the case can be represented by a lawyer (including your relative by power of attorney or oral petition).

What should a guarantor do after a court decision?

If you believe that the court ignored some of your arguments and incorrectly assessed all the circumstances of the case, you have the right to appeal it to a higher court (file an appeal) within 1 month from the date of the decision. When filing a complaint, the decision will come into force only after the case has been considered in a higher court.

It happens that a court decision to collect a debt is made without the participation of guarantors and the borrower. In this case, it is called absentee. You can first try to overturn a court decision in absentia in the same court, and if nothing works out, there is always the possibility of filing an appeal in the general manner. Please note that appealing a court decision to collect a debt, as a rule, makes sense only in exceptional cases. For example, if you have not signed any guarantee agreements.

If, for objective reasons, you cannot repay the amount of debt under a court decision in one lump sum, we recommend that you contact the court that made the decision with a request to grant an installment plan or a deferment for the execution of the decision.

We do not recommend hiding from bailiffs. You can come to the bailiff for an appointment and agree that you will pay off the debt regularly. In this case, the bailiffs can meet you halfway and will not apply harsh repressive measures. It is worth remembering, however, that all oral agreements with bailiffs have no legal force and do not guarantee you protection from seizures of property. It is most correct to arrange payment in installments through the court.

Still definitely necessary transfer to the bailiff any available information about the property, work, income of the main borrower, preferably in writing with a confirmation of delivery.

The guarantor repaid the debt or part of the loan debt for the borrower

The law provides that when the guarantor fulfills the obligations under the loan agreement, he receives the right to demand from the borrower the return of all the amounts that he paid for the borrower under this loan. In addition, you can demand interest on the amount paid to the bank and compensation for all your losses.

• loan agreement;
• guarantee agreement;
• a court decision to collect the amount of debt under a loan agreement;
• decisions on the initiation of enforcement proceedings against you and on its termination;
• receipts for payment of debt to bailiffs or account statements if money was debited from your account;
• if the bailiffs withheld your debt from your salary, obtain a certificate from the accounting department at your place of work about the amount of deductions;
• order a certificate from the bailiffs about the amount that you actually paid for the debtor;
• if you suffered any losses due to this situation, keep supporting documents (this could be the costs of a lawyer who helped you fight the case in court, interest on the loan if you took out a loan to pay off the debt, etc.).

Within 3 years from the date of full repayment of the debt for the borrower, you can file a claim in court at the place of his residence demanding the recovery of all amounts paid by you for the borrower.

Last updated: July, 2019

The guarantor's liability for the loan begins immediately. A loan with a guarantee assumes that when applying for a loan, the guarantor assumes joint and several obligations with the borrower by default. He does this on a voluntary basis, fully entering into contractual credit relationships. Fulfillment of obligations under the loan agreement may not occur if the borrower is a bona fide client. When the borrower does not pay, the entire burden falls on the shoulders of the guarantor.

Throughout the entire period of validity of the guarantee agreement, the parties are responsible for the obligations.

The guarantor begins to bear responsibility immediately after signing the agreement with the lending institution.

If there were several guarantors, then each of them has obligations to the bank.

If the borrower violates the terms of the agreement, the bank acquires the right to present all issues to the guarantor.

Characteristics and types of responsibilities

According to all canons, the borrower and the guarantor are jointly and severally liable to the creditor bank. Although the law on guarantees states that guarantors cannot claim the property purchased on credit. The agreement may stipulate subsidiary liability. It carries an additional burden on the guarantor compared to the borrower. When applying for a loan by an individual, subsidiary guarantee is rarely found. This applies more to lending to legal entities and corporate clients.

Usually all conditions are standard, exceptions rarely occur:

1. The liability of the guarantors and the borrower to the bank is equal (joint and several). The bank can make claims to 2 parties simultaneously.
2. In the event of force majeure circumstances that interfere with the payment of regular payments by the borrower, the entire burden of banking responsibility falls on the guarantor.
3. The death of the borrower client or a change in the terms of the agreement will not in any way change the weight of responsibility borne by the guarantor (hereinafter referred to as the guarantor).

What options are there for minimizing bail?

The guarantor must initially understand that the guarantee rests on his shoulders. And the collection office will handle the collection of funds. Banks do not encourage judicial practice, so they rarely turn to judicial structures.

What should be the first steps if a collection agency begins to collect debt obligations:

1. The first step is to have a conversation with the borrower. The guarantor is often a relative or family friend, so finding a common solution is more often possible than not. If the borrower has lost his source of income, it means he has nothing to pay with. There is no legal way to make him pay his bills.
2. Can't find a common language? Then the guarantor will defend his rights before the bank. It will no longer be about friendly relations, everyone will act in their own interests.

All debt obligations of the debtor to the creditor are transferred to the guarantor and are now his pressing issue.

The guarantor must clarify the following issues:

1. All the financial details of the transaction (what is the amount of debt and whether penalties were accrued). The bank must provide documented documentation of all calculations.
2. If the guarantor has a solution to the problem, then it can be used as an alternative. Perhaps the borrower has property that he carefully hides. It can be used to pay off a debt. If there is no property, then perhaps additional sources of income. In this way, the guarantor protects himself from any claims against him.
3. All options are futile, then the guarantor can only ask the bank to restructure the debt. It is unlikely that you will be able to avoid responsibility. The bank will defer payments and give more time, during which the guarantor can still convince the borrower client to come to his senses and pay every penny.

Negotiating with banks is a completely thankless task. Without consent, it may issue an invoice, which the guarantor must pay. We definitely do not recommend putting on a pose and conducting an aggressive dialogue with the bank. The guarantor should conduct an active dialogue with the bank and offer alternative ways to solve the problem. The purpose of restructuring should be called not only a difficult financial situation, but also the desire to help the bank collect debts from the borrower. Banks encourage such initiative and are more willing to accommodate the guarantor.

Can the guarantor skip the loan payment altogether?

The guarantor will be able to avoid liability only if the bank refuses all claims made.

This goal is quite achievable for the guarantor, the main thing is the ability to find solutions to the assigned tasks:

• Trying is not torture. You can challenge the bail agreement. The chance of a positive outcome is slim. But the guarantor gains time to fulfill the presented debt obligations. If you dig deep into the agreement, you can find a couple of discrepancies. This will require an experienced lawyer who needs to be paid.
• Hide property and sources of income. You can earn income by working informally. The financial institution will begin to challenge the decision. What does the guarantor risk? A nuance for the guarantor is to involve the tax institution in your person. If this scheme plays out, then it is possible that you will be held accountable. Then you will have to live on an unofficial income for a long time.
• Create a scheme where the bank will have no claims against the guarantor under any circumstances. The risks are minimized, but it is difficult to pull off this scheme. You need to think through every detail to the smallest detail in advance.
• An unpleasant outcome for the guarantor is his recognition as incompetent. In fact, this is a deceptive maneuver that is difficult to implement in reality. The bank will contact a medical expert who will prove otherwise.

Serious risks that the guarantor may bear

“This is my friend, comrade - I will become a guarantor.” Nobody thinks about the consequences of this decision. The guarantor for the loan will then not only have to pay, but also put a mark on the credit history. We are not talking about justice.

What threatens the guarantor? Least:

• Payment of the remaining portion of the debt obligation.
• Payment of accrued interest.
• Payment of accrued penalties on all overdue payments.
• Payment of bank expenses for withdrawal of funds.
• Payment of legal expenses.
• Enter into a relationship with a collection agency (if the financial institution sells the debt).
• Damaged reputation in BKI. The likelihood of taking out a loan on adequate terms is reduced to a minimum.

This threatens not only the guarantor, but also his family and friends. To more or less successfully complete the entire procedure, it is worth conducting successful negotiations with the creditor. Then he will allow you to pay the principal amount of the debt and accrued interest.

What rights does the guarantor have?

The guarantor who has paid the financial obligations is left with nothing? No. The guarantor can return his own funds in court.

In case of repayment of the debt in full, the guarantor becomes the receiver of the bank. Now the client-borrower owes his guarantor.

The guarantor has all the rights of the creditor bank:

1. The guarantor can receive the entire package of papers for the borrower, including the agreement, payment schedules, letters sent, claims sent and other documentation.
2. Demand that the debtor pay all expenses, using both bailiffs and peaceful negotiations.
3. Sell ​​all debt obligations to the collection office. Then the borrower will definitely be in trouble.

If you were confident in the borrower, but he disappointed you, there is still a way out. An experienced lawyer + a set of papers + patience is the key to success.

Video

conclusions

The ideal solution to the issue is for the borrower to reach an agreement. The guarantor can help in finding a job, can borrow money without interest, or together come up with a scheme for resolving issues. Appearing together at a financial institution with a proposal to solve a problem situation will endear the employees to you. Employees will appreciate the proposal made - and there is a high probability that they will agree.