What is JOINTLY AND SEVERALLY?

A full loan balance is a liability to the signatories as a group or from each of them individually, with enough free assets to satisfy the lender’s claim. The lender may sue any signatory, and has the freedom to claim against one without taking any action against the others. Term used commonly in loan agreements involving two or more borrowers not necessarily on a proportional or prorata basis. Also refer to joint liability.

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