Kafolatlama

Kafolatlama is the act of providing a guarantee or surety for another party’s obligation, ensuring that the obligation is fulfilled even if the principal debtor defaults. In a kafolatlama arrangement, a guarantor agrees to satisfy the debtor’s obligation up to a specified limit or for specified performance, becoming liable to the creditor if the debtor fails to comply. The guarantee is typically a contractual commitment and can be used across various financial and commercial transactions.

Common participants include the obligee (creditor), the principal debtor, and the guarantor (kafildir). In many cases, a financial institution such as a bank acts as guarantor, issuing a bank guarantee or a letter of guarantee that the creditor can draw upon under defined conditions. Kafolatlama is frequently used in loans, leases, construction contracts, import/export transactions, and other arrangements where the creditor seeks additional assurance of repayment or performance.

Types of kafolatlama include personal guarantees, bank guarantees, and corporate guarantees. Guarantees can be limited (capped) or unconditional, and are usually irrevocable and enforceable upon demand or upon proof of default. Enforceability generally requires a written contract with clearly defined scope, limit, and duration, though formal requirements vary by jurisdiction.

Rights and remedies after default typically allow the creditor to demand payment from the guarantor, who may then seek reimbursement from the principal debtor. Guarantors may also acquire subrogation or recourse rights to recover amounts paid. Kafolatlama differs from asset-based security in that it rests on a promise to pay rather than a lien on specific assets.

Regulatory and accounting treatment varies by country. Guarantees are often treated as contingent liabilities in financial statements and are subject to applicable civil or commercial law and banking regulations.