Stipulation for Payment from a Definite Property in Contract of Guarantee

Contract of Guarantee in Emamiyeh jurisprudence and Iranian Civil Code transfers the debt from the debtor to the surety and does not create solidarity of debtors between debtor and surety. So, if the surety does not have a better financial position than the debtor, contract of guarantee may not provide the creditor a more and better bond to the bond-holder: by contract of guarantee he faces with another person and the risk of non-performance of the debt survives yet. One of the mechanisms for deceasing the risk is to relate the contract of guarantee to a definite property, that is to provide that the debt should be paid from a specified property. Such a provision, that can be treated as a private seizure, is valid according to the most Emamiyeh jurisprudents. It has various important consequences which are discussed in this article. For example, such provision endows the bond-holder with a real right as to the property.