SOME ASPECTS OF APPLICATION OF A GUARANTEE

Abstract

The guarantee is one of the means for reinforcement of obligations, regulation of which in the Latvian law is rather succinct and does not cover all the facts and circumstances. The discussions among legal scholars, in recent years, have been periodically focused on the issues of guarantee in Latvia. One of the problematic economic aspects of the guarantee is the participants of the proceedings within a process of the recovery of debt reinforced with a guarantee. The other challenge is the distinction between the regulation of guarantee in civil law of Latvia and the internationally accepted commercial practice. The third range of questions relates to the legal force of the guarantee resulting from the insolvency proceedings. For more effective application of the guarantee in economic activity the changes of legislation or its interpretation are possible in Latvia.