tagatuse

Tagatuse is an Estonian legal and financial term describing the security or guarantee provided to ensure the performance of an obligation. It can be offered by the debtor or by a third party and may take several forms, including a bank guarantee, a personal guarantee, or a pledge of assets.

In practice, tagatuse functions as a secondary security right that the creditor can rely on if the primary obligor fails to meet the obligation. The exact rights and procedures are defined in contract law and the applicable civil or financial code; enforcement may involve presenting the guarantee to the guarantor or claiming against the pledged assets, depending on the form of tagatuse used.

Tagatuse differs from tagatis, which more narrowly denotes collateral or security attached to an obligation in the form of assets alone. Tagatuse is a broader concept that may refer to the existence of a guarantee or security arrangement, not just the asset itself.

In common usage, tagatuse appears in banking, leasing, construction, and public procurement contracts, particularly where lenders require additional security beyond the primary obligation. In contract drafting, terms related to tagatuse are described in terms of scope, amount, duration, conditions of enforcement, and procedures for release.

See also: tagatis, garanti, pant, security deposit.