GUARANTEE IN FAVOUR OF A
BANK FOR GUARANTEEING BANKING FACILITIES OR OTHER ACCOMMODATION [CD1]
THIS
Guarantee is made at…………….this…………….day of…………….20 by Shri A, son of…………….resident of…………….
hereinafter referred to as the Guarantor of the ONE PART in favour of Bank Ltd., a banking Company incorporated under
the Companies Act, 1956 and having its registered office at …………….. hereinafter
referred to as the Bank of the OTHER PART.
THIS
DEED WITNESSETH AS FOLLOWS:
1.
In consideration of the Bank
granting or continuing to make cash credit facilities or other financial
accommodation to Shri…………….son of
resident of…………….carrying on the business of ……………. under the name and
style of M/s . …………….in sole proprietorship, hereinafter referred to as the
Customer, the Guarantor hereby guarantees on demand to pay to the Bank, all
moneys and discharge all obligations and liabilities now or at any time
hereafter due, owing or incurred to the Bank by the customer and any statement
of account of the customer by any duly authorised official of the Bank shall be
conclusive evidence against the Giuarantor of the indebtedness of the customer
to the Bank.
2.
The total liability under
this guarantee shall be limited to the sum of Rs…………….at any point of time
together with interest, costs, charges and expenses.
3.
This guarantee is a
continuing guarantee and shall be available to the Bank for the debts and
liabilities of the Bank of the customer in any manner whatsoever
notwithstanding the death, bankruptcy, insanity or other incapacity or any
change in the constitution of the customer or in the name and style thereof or
any other settlement of account, provided that the Guarantor will be entitled
to determine this guarantee by three months notice in writing to the Bank;
provided further that such determination will not affect the liability of the
Guarantor for money, liabilities and obligations present or future, due,
incurred or owing prior to the expiration of such three months.
4.
This guarantee is in
addition to and shall not substitute with or otherwise prejudice or affect any
other right, remedy, guarantee or security given by the customer or any other
person, firm or company on behalf of the customer and shall be enforced by the
Bank, notwithstanding the same or any other bill, note, mortgage, pledge or
lien held or available to the Bank.
5.
The Guarantor declares,
agrees and undertakes that his liability will not be affected nor shall the
guarantee be discharged or diminished by any of the following reasons:
(i)
The Bank compounding,
compromising, discharging, releasing or varying the liability of or granting
any time, indulgence or concession to the customer or any person or renewing,
determining, varying or increasing any negotiable instrument, accommodation
facility or transaction in any manner or concerning in accepting or varying,
any compromise, arrangement or settlement or omitting to claim or enforce
payment from the customer or any other person; or
(ii)
Any act or omission, which
would have discharged the liability of the surety or by anything done or
omitted which might operate to exonerate the guarantor.
(iii)
Any present or future bill,
note, guarantee, indemnity, mortgage, charge, pledge, lien or other security,
or right or remedy held by or available
to the Bank being or becoming wholly or in part void, voidable or unenforceable
on any ground whatsoever or varying,
releasing or failing to perfect or enforce any of the same by the Bank
from time to time.
6.
The Guarantor declares and
confirms that he has not taken or received and undertakes not to take or
receive the benefit of any security from the customer and in case any such
security is taken by the Guarantor, he shall receive such security and moneys
on trust for the Bank as a continuing security for the liability of the
Guarantor to the Bank hereunder.
7.
The Guarantor further
declares and confirms that until the amount due and payable by the customer to
the Bank, he waives all rights of subrogation and indemnity against the
customers and he will not demand or accept or negotiate, assign or otherwise
dispose off any moneys, obligation or liabilities owing to the Guarantor from
the customer or any promissory note, bill, negotiable instrument, guarantee,
indemnity, mortgage, charge or other security from the same or to take any
steps to enforce any right against the customer or claim any set-off or counter
claim against the same or will claim any share or benefit and if he receives
any money, promissory note, bills of exchange, negotiable instrument,
guarantee, mortgage, charge, security, lien or any other benefit, such money
and benefit received shall be held in trust for the Bank.
8.
In case of default by the
customer, the Bank will be entitled without any notice to surety to combine or
consolidate all or any accounts of the Guarantor alone or jointly with others,
set-off or transfer any sum standing to the credit of any one or more such
accounts towards satisfaction of any money, obligations or liabilities of the
Guarantor to the Bank under these presents. The Bank will have lien and charge
over all the moneys, shares, securities or assets of the Guarantor in the
possession of the Bank, until all the moneys, due to the customer's liability
and of obligations are paid, discharged or satisfied.
9.
The Guarantor shall pay to
the Bank, the sum demanded due and payable under this guarantee free from any
present or present taxes, levies, duties, charges, fees or without set-off or
counter claim or any restriction, condition, deduction whatsoever, Within a
period of one week from the receipt of the letter of demand from the Bank. If
the Guarantor is required to make any deduction from the payment under law, he
shall pay the amount of deduction to the Bank, so that the Bank may receive the
amount, which it is entitled to receive under the guarantee. If the Guarantor is
compelled to pay any sum of money in terms of a Court decree in terms of this
guarantee, the Guarantor will not be discharged from his liability unless the
Bank gives a certificate of no liability under this guarantee to the Guarantor.
10.
The notice or demand for
payment by the Bank hereunder shall be made by serving on the Guarantor
personally or sent by registered post at his usual or last known place of abode
or business.
11.
Each of the provisions of
this guarantee is severable and distinct from the others and the Bank will be
entitled to enforce its right under any clause and in case any clause becomes
invalid, illegal or unenforceable due to any reason whatsoever, the bank will
be entitled to enforce the remaining provisions hereof.
IN
WITNESS WHEREOF, the Guarantor has signed this
guarantee on the day and the year first hereinabove written.
Signed and delivered
by the within named Guarantor in the presence of:
1 .
2.
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