New and Updated Guarantees
Our Guarantees Folder, which forms part of the Loan and Finance Documents Folder, has been completely overhauled. For November, we have added two new guarantees; a ‘Personal Guarantee’, and an ‘All Monies Guarantee and Indemnity’.
If a company borrows money, the lender will often request that the company supplements the loan agreement with one or more Personal Guarantees. Such supporting guarantees would most often be given by a director, or a director and his or her spouse. The lender will take significant comfort from the provision of such guarantees, as individual guarantors will be concerned to protect their personal assets, and thus have added incentive to ensure that the borrower does not default on its obligations under the lending arrangement.
The new ‘All Monies Guarantee and Indemnity’ differs from the other guarantees in the folder, in that it is designed to cover all monies, debts and liabilities which a single corporate borrower incurs to a lender, on any account in connection with banking or credit facilities provided by the lender. The existing guarantees only cover obligations incurred under a single loan agreement.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific