How dangerous bail?

My brother's brother, a friend of a friend. Our good relationships with friends and partners, bankers have learned to exploit. Invented bail. What is it and what are the dangers inherent in? Imagine that my childhood friend, Simon wants to get a bank loan, but there demanding that he led the guarantor. Simon asks me, and I fear to offend him refused, put his signature in the contract. Now, I - the guarantor. That I will pay on the loan, if Simon for some reason can not, for example, he was fired, he fell ill, went bankrupt, fled the country. Surety - a big risk. • Risks surety risk their finances. On the surety bear all the burden on the loan, including interest on the loan, penalties and interest for late payment • risk their credit history. Guarantor, as an ordinary borrower must pay regularly on the loan. Details of any delay immediately fall into the credit history. • the risk of their property. Court-ordered property of the surety may take over the debts and give the Bank to sponsor • Return to duty. As soon as the surety fully pay the bank loan, he has a legitimate right to demand their money from the seeds, that is with a man who will be responsible for • bank documents. The Bank is obliged to hand over documents proving the claims FINANCING guarantor to the loan to the debtor.