LETTER OF GUARANTEE AND INDEMNITY [CD1]
TO,
……………….……………….
……………….……………….
1. In consideration of your agreeing to grant lease of……………….
to................ (hereinafter referred to as "the lessee") under
the terms of a lease agreement proposed to be made between yourselves and the
lessee. of the equipment specified in the Schedule to the said lease agreement
and more particularly described in the Schedule hereto, we the undersigned
hereby jointly and severally guarantee on demand by you the punctual payment by
the lessee all lease rentals, interest, all other sums whatsoever due and the
Agreed loss Value referred to in Articles……………….and the Schedule of the lease
agreement and the due performance and observance of all the lessee's covenants
and obligations thereunder and we further undertake to jointly and severally
indemnify and keep you indemnified against all losses, claims, damages,
demands, charges and proceedings incurred or suffered by you in consequence of
any failure by the lessee to perform any of the lessee's covenants and
obligations under the lease agreement.
2. We jointly and severally agree that any notice in writing by you
about the indebted-ness of the lessee about the lease rentals and other sums
whatsoever due under the lease agreement shall be conclusive evidence against
us and we shall pay the said sum to you within....................days of
service of notice by you in this regard.
3. We further jointly and severally agree that:
(i)
our liability under this
guarantee and indemnity shall be as principal debtors and shall be a continuing guarantee and shall be
irrevocable;
(ii)
our liability shall subsist
whether or not you have availed legal right or remedies against the losses or not;
(iii)
our liability shall also extend
to cover any renewal or renewals of the lease
agreement; and
(iv)
this guarantee and indemnity
shall not be affected or prejudiced by any other guarantee/Indemnity and any other form of
security now or hereafter held by the
lessor.
4. Our liability
under this guarantee shall not in any way be discharged, diminished or affected
(i)
By the grant of time or
indulgence to the lessee or by effecting any compromise with the lessee or any agreement not to sue
the lessee or any variations *of the
terms of the lease agreement.
(ii)
Any change in the constitution
of the lessee.
5.
Our liability under this
guarantee shall be in addition to any security or additional security obtained
by you from the lessee and the loss, impairment, realisation or release of any
security will not in any way diminish or affect our liability.
6.
Any waiver, forbearance or
indulgence granted by you to us or any of us shall not affect our liability to
you hereunder and this guarantee and indemnity shall bind our respective heirs,
representatives, executors, successors and assigns and shall not be determined
or affected by the death or incapacity of any one of us.
The Schedule
above referred to
WITNESSES
1.
(1)
Signature……………….……………….
Full
Name.. ……………….……………….
Description
and address ..........................
2.
(2) Signature……………….……………….……
Full
Name ................................................
Description
and address……………….………
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