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 ail 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 indebtedness 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 lessee 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, realization 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 heath or incapacity of any one of us.
The
Schedule above referred to
(1) Signature
...................................
Full
Name ......................................
Description
and address .................
(2) Signature
.......................................
Full
Name ......................................
Description
and address ......................
WITNESSES;
1.
2.
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