GURANTEE BY DIRECTOR TO THE
BANK [CD1]
To
________________ Bank
Dear Sir,
I the undersigned as Director of
_________________________________________ Ltd. company of incorporated under
the Companies Act, 1956 and having its registered office at
_________________________________ (Referred after it as "Company") hereby execute this
letter of guarantee.
A credit overdraft to the extent of Rs. _______________ has been
granted/ proposed to be granted to the Company per our request by the bank. We
the Directors of the Company, also guarantee to you paying all moneys, not
exceeding Rs. __________________ as due to you in future from the Company as
depicted in the balance their account. The balance as stated here would include
all interest, commission and other charges and expenses which you may in the
course of your business charge in respect of any discount or advanced to the
said company or otherwise. Further we to consent as follows:
1. This guarantee shall be enforceable and existing despite the fact if
total amount Rs. _________ is advanced to the Company or only a portioned of
the same.
2. This guarantee shall be a running guarantee.
3. Any negligence or forbearing by the bank in enforcing payment of any
moneys against the Company, which is desired to be hereby secured or granting
of time for paying thereof shall not in any way release us, the directors
Company, of our liability under this guarantee.
4. We, as directors of Company jointly and severally shall be liable
under this guarantee only to the limit of the sums as given in the Annexure
enclosed hereto.
5. During the prevalence of this guarantee, if any of the directors
dies or ceases to be a director of the
Company and the Company is unable to substitute satisfactory
guarantors in their place, the Company in that case shall pay to you the amount
relating to such director. You shall accept this payment as made per this
clause, in full satisfaction of all claims against such director concerning
this guarantee.
Date:
Place:
__________
(Signature of the director with name)
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