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Israel: Personal Guarantees Between Commercial Law and Consumer Protection

Personal guarantees are common practice in Israel. Banks and lenders often demand personal guarantees from third parties as security for the provision of credit, either as sole security or in addition to other – usually proprietary – collateral. However, personal guarantees are common not only in the banking context, and may be found in various contexts.The article, which was originally written as a national report for the 19th International Congress on Comparative Law (2104), describes the current Israeli Law regarding personal guarantees, while emphasizing the tension between commercial needs and consumer-protection requirements.