Liability of employee for the loan taken in the company's name

Madam,

I left the country by giving a six-month notice and have cancelled my visa on exit. But while filing the application loan form for the company, I signed the promissory note which was mentioned in the application form.

While signing loan form I asked the agent of the bank that I will not be responsible as my operation manager is forcing me to sign this loan form. I am only the cost and revenue controller as mentioned in my offer letter. The bank agent emailed me the same that this loan is for the company and the company will be responsible.

The bank has given the loan facility in the name of the company and has taken the security deposit cheque in advance which is signed by my employer.

Please advise me as currently I am applying for job in the Middle East and I would like to be sure I will not face any problem.

I understand your concern. Logically, the promissory note has a purpose. It is a precautionary guarantee which is an ADDITIONAL third party undertaking, separate from the undertaking of the issuer (your company).

Consequently, the precautionary guarantor shall be liable in the same manner as the issuer. In the event of default, the Commercial Code allows the beneficiary recourse against the borrower as well as the precautionary guarantor (if signed by him).

With best regards,

Mrs. Khan