Turvakiinnitykset

Turvakiinnitykset, or security guarantees, are financial instruments used to ensure the repayment of a loan or debt. They are typically issued by a bank or financial institution and are backed by the borrower's assets or income. The primary purpose of a turvakiinnitykset is to provide lenders with a level of security, reducing the risk of default.

There are several types of turvakiinnitykset, including:

1. Mortgage guarantees: These are issued when a property is used as collateral for a loan. The guarantee ensures that the lender will be repaid if the borrower defaults on the loan.

2. Income guarantees: These are based on the borrower's income and are used to ensure that the lender will be repaid if the borrower's income decreases.

3. Asset-based guarantees: These are based on the value of the borrower's assets, such as stocks, bonds, or other investments.

Turvakiinnitykset can be either first or second priority. First priority guarantees are paid before any other claims on the assets, while second priority guarantees are paid after other claims have been satisfied.

The terms of a turvakiinnitykset, including the amount of the guarantee, the duration, and the conditions under which it can be called, are typically outlined in a contract between the lender and the borrower. It's important for borrowers to understand the terms and conditions of any turvakiinnitykset they enter into, as failure to do so can result in financial loss.