PAYMENT OF DEBT GUARANTEE - LETTER

PAYMENT OF DEBT GUARANTEE - LETTER  [CD1] 

 

 

Dated:_____ 

 

To 

 

M/s__________________________________________ Ltd. (Creditors)  (Address) 

 

Dear Sirs, 

 

In   consideration    of     your    supplying   goods     at     my    request     to     M/s

________________________________________ (Principal Debtor) for the amount of Rs.____________

I, Mr. _______________________________,

 S/o Sh. _____________________________, 

R/o__________________________________ (Surety)          so guarantee the following   to                                                            you: 

 

If the said M/s __________________________________________ (Principal Debtor) does not pay all sums of moneys as due to you on above account I hereby undertake in paying same to you, on demand with interest @ _______ % per annum till payment. 

 

The interest as stated above will be computed only from date of serving of registered notice of demand on me. 

 

I to consent that this guarantee, also considered as a running guarantee, is not determinable on any payment /payments, and shall not be in effective by your granting any time, any concession or by the insolvency of the Principal Debtor. 

 

This guarantee is given without prejudice to all my rights of reimbursement as against the said Principal Debtor, as Surety for paying all sums to you and costs, charges and expenses incurred as relating therewith. 

 

But, my guarantee is limited to pay the sum of Rs. ____________ with interest at above state rate. 

 

Signature 

 

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 [CD1]PAYMENT OF DEBT GUARANTEE - LETTER