Singapore legislation

Section 22

of Hire-Purchase Act 1969

Section 22

Rights of guarantor against owner

(1)

A guarantor under this Part may at any time secure his discharge by paying the amount due to the owner from the hirer.

(2)

Upon such payment being made, the guarantor is entitled to —

(a)

sue the hirer in the name of the owner for any breach of the hirer’s obligations under the regulated agreement subject to providing the owner with a suitable indemnity for costs or sue in his own name if he takes a legal assignment of the debt under the regulated agreement; and

(b)

insist upon the transfer to himself of all securities taken by the owner from the hirer to secure performance of the hirer’s obligations.

(3)

A guarantor is entitled in the event of any claim being made against him by the owner on the guarantee to avail himself of any set‑off or counterclaim which the hirer may possess against the owner.

(4)

Unless otherwise agreed by the parties, a guarantor who exercises his rights under this section shall pay to the owner any reasonable costs incurred by the owner (including legal expenses) in preparing, drawing, stamping or registering the indemnity, assignment or transfer, as the case may be.

Read in full context — Hire-Purchase Act 1969 →