All Monies Guarantee and Indemnity
This All Monies Guarantee and Indemnity is a legally binding document that allows for one party to assume liability for the obligations of a third party Borrower. The parties to the underlying facility agreements are the Lender and the Borrower. The parties to the All Monies Guarantee and Indemnity are the Guarantor and the Lender.
This Agreement is slightly different to the other guarantees in this portfolio, as the scope of the liability of the Guarantor is much wider. The definition of ‘Guaranteed Obligations’ is drafted widely to cover all monies, debts
A guarantee will normally be put into place at the request of the Lender before they will lend under a proposed facility arrangement.
Under the agreement, the Lender can request the Guarantor to repay the Guaranteed Obligations in the event that the Borrower defaults on its obligations to the Lender. The repayment by the Guarantor is ‘on demand’, which means that, following a default by the Borrower, there is no waiting period before the Lender can claim against the Guarantor.
This Guarantee Agreement
This document contains extensive provisions and is best suited to large transactions. It provides the beneficiary with greater layers of risk protection than the Short Form Unlimited Guarantee and Indemnity.
If you are looking for a document to cover a personal guarantee, please look at the ‘Personal Guarantee’.
This document is drafted as a Deed, and accordingly, care must be taken to ensure that the execution formalities are properly complied with.