Contract of Guarantee to Lender relating to Loan Facility

The document titled 'Contract of Guarantee to Lender relating to Loan Facility' is a guarantee and indemnity agreement entered into between the Guarantor and the Lender. The purpose of this document is to provide a guarantee and indemnity for the obligations and liabilities of the Borrower under the Loan Agreement. The Guarantor requests the Lender to grant or continue to grant the loan to the Borrower, and in return, the Guarantor agrees to give a guarantee and indemnity in respect of the obligations and liabilities of the loan.

 

The document begins with an interpretation section, defining various terms used throughout the guarantee. It then proceeds to outline the consideration for the guarantee, stating that the Guarantor agrees to provide the Lender with a guarantee and indemnity in exchange for the Lender agreeing to grant or continue to grant the loan to the Borrower.

 

The guarantee section of the document states that the Guarantor guarantees the payment of the debt when it becomes due and payable by the Borrower. The Guarantor agrees to pay the debt immediately upon written demand from the Lender. The Guarantor's liability under the guarantee is limited to the aggregate of the principal sum of the loan and all interest, fees, commissions, charges, and expenses that have accrued under the agreement.

 

The document also includes provisions regarding indemnity, stating that the Guarantor is liable to the Lender as if the Guarantor were the principal debtor for the whole amount of the debt. The Guarantor's obligation under the indemnity is separate from and independent of the guarantee, and the Guarantor agrees to pay the whole amount of the debt immediately upon demand from the Lender.

 

Other important provisions of the document include clauses regarding the Guarantor's liability, the independence of the guarantee and indemnity from any other security, the postponement of the Guarantor's rights, deductions from other credit balances and lien, the Lender's claim against the Borrower, the continuing guarantee and indemnity, the suspense account, the effect of the Lender's actions or omissions on the Guarantor's liability, the waiver of defences, payments without deduction, application of payments, binding effect of signing the guarantee, change of the Lender's organizational structure, joint and several liability, evidence of the Borrower liability and the Guarantor liability, interest on expenses, the Guarantor's provision of correct information, notices and demands, other general matters, disclosure of information, the Lender's power to assign or transfer its rights and obligations, unenforceability of certain terms of the guarantee, payment in other currencies, and the choice of law and jurisdiction.

 

Overall, this document is of utmost importance as it establishes the Guarantor's liability for the debt and provides the Lender with a guarantee and indemnity in case of default by the Borrower.

How to use this document?

1. Understand the purpose: This document is a guarantee and indemnity agreement entered into between the Guarantor and the Lender to provide a guarantee and indemnity for the obligations and liabilities of the Borrower under the Loan Agreement.

2. Familiarize yourself with the terms: Read and understand the definitions and terms used throughout the guarantee, as they will be important for interpreting the document.

3. Know the consideration: The Guarantor agrees to provide a guarantee and indemnity in exchange for the Lender agreeing to grant or continue to grant the loan to the Borrower.

4. Understand the guarantee: The Guarantor guarantees the payment of the debt when it becomes due and payable by the Borrower. The Guarantor's liability is limited to the principal sum of the loan and all accrued interest, fees, commissions, charges, and expenses.

5. Be aware of the indemnity: The Guarantor is liable to the Lender as if the Guarantor were the principal debtor for the whole amount of the debt. The Guarantor's obligation under the indemnity is separate from and independent of the guarantee.

6. Know the provisions: Familiarize yourself with important provisions such as the Guarantor's liability, the independence of the guarantee and indemnity from any other security, the postponement of the Guarantor's rights, deductions from other credit balances and lien, the Lender's claim against the Borrower, the continuing guarantee and indemnity, the suspense account, the effect of the Lender's actions or omissions on the Guarantor's liability, the waiver of defences, payments without deduction, application of payments, binding effect of signing the guarantee, change of the Lender's organizational structure, joint and several liability, evidence of the Borrower liability and the Guarantor liability, interest on expenses, the Guarantor's provision of correct information, notices and demands, other general matters, disclosure of information, the Lender's power to assign or transfer its rights and obligations, unenforceability of certain terms of the guarantee, payment in other currencies, and the choice of law and jurisdiction.

7. Seek legal advice: It is advisable to seek independent legal advice before signing this guarantee to fully understand its nature and effect.

8. Keep a copy: Make sure to keep a copy of the signed guarantee for your records and reference.