The fact that an association or a party, if there is no association, must be the guarantor can also have another effect. With this extra guarantee, the banks can be much more generous and not quite as strict when it comes to loan applications, since they know that, at the end of the day, either the party or the party association will be liable for any unpaid debt. Therefore, if you change the rules of the market...
In the end, if the association were to default, it could lead to the cancellation of the association's registration. Therefore, the party would become liable. There is no legal obligation for an association to be registered: it is an option that is provided under the act. In some parties, associations are not registered and they report directly to the party for matters relating to funding and financial returns.