Legal Definitions - intercedere

Intercedere refers to the act of voluntarily taking on the financial obligations or debts of another person or entity. This often involves formally agreeing to be responsible for someone else's debt, particularly by acting as a guarantor or surety. In essence, if the original debtor fails to meet their financial commitments, the person who "intercedes" becomes legally bound to fulfill those obligations.

Here are some examples to illustrate this concept:

• Co-signing a Student Loan: Imagine a college student who needs a loan to cover tuition expenses but lacks a sufficient credit history to qualify on their own. Their parent agrees to co-sign the student loan application.

  This is an act of intercedere because the parent is formally assuming responsibility for the student's debt. If the student, for any reason, fails to make the required loan payments, the parent is legally obligated to step in and make those payments to the lender.

• Personal Guarantee for a Business Loan: A startup company seeks a substantial loan from a bank to fund its expansion. The bank, assessing the new company's limited operational history, requires the founder and CEO to personally guarantee the loan.

  The CEO's personal guarantee represents intercedere. While the company is the primary borrower, the CEO is personally promising to repay the loan if the business itself becomes unable to do so. This provides the bank with additional security for the debt.

• Guarantor for an Apartment Lease: A recent graduate is looking to rent their first apartment but doesn't meet the landlord's strict income-to-rent ratio requirements. An older sibling with a stable job agrees to be a guarantor on the lease agreement.

  By acting as a guarantor, the sibling is performing an act of intercedere. They are taking on the potential financial obligation of the rent. If the recent graduate fails to pay rent or causes damages that result in financial penalties, the sibling would be legally responsible for covering those costs to the landlord.