The Plenum of the Supreme Court of Ukraine dedicated to the consideration of civil and criminal cases (VSSU) approved Resolution № 5 dated 30.03.2012 "On the practice of applying the laws by courts in resolving disputes arising from loan relationships" (Resolution).

Considering that the parties in disputes arising from loan relations are both legal entities and individuals, the VSSU explained the procedure for determination of jurisdiction in such disputes.

According to the Resolution courts should take into account the fact that such cases should be resolved in civil proceedings, if one of the parties is an individual, and inquiries are interrelated and their separate consideration is impossible. As an example, claim of a bank (or other financial institution) to an individual as the borrower and a legal entity as the surety, or vice versa, resulting from the same relationships – getting a loan.

VSSU considered the fact that a contract of guarantee is in addition to the main obligation – loan agreement, and it is being entered in order to secure the loan. The surety under such contract is liable to the creditor, as a general rule, in solidarity with the borrower, unless the contract of guarantee sets an additional responsibility. Inability of separate consideration of these agreements may be due, in particular, to the definition of the debt amount, method of obligations execution and other contractual terms and conditions.

However, considering that suing solidary debtors is a right, but not an obligation of a bank (or other financial institution), in case of a claiming each of them separately courts must take into account the prescribed by Civil Procedural Code competence of courts to review civil cases. In particular, a claim of a bank (or other financial institution) to a legal entity - the surety with the involvement of an individual - the borrower as a third party, who does not file independent claims with respect to the matter of dispute, shall be resolved in commercial court proceeding.