Losses: loans to traders: payments under guarantee: irrecoverability
Sometimes, a lender may demand payment from a guarantor simply because he finds it easier to get his money in that way. This is not, in itself, a sufficient basis for a claim as you will still need to check that the loan was genuinely irrecoverable prior to the demand from the lender. All the remarks at CG65950 - CG65958 apply concerning the question of irrecoverability of the loan. Additionally, for the purpose of claims in respect of guarantee payments, an amount is not to be regarded as having become irrecoverable if it has so become in consequence of any act or omission by the guarantor.