GUARANTEE

THIS RELEASE DEED, made at ___ this _____ day of ____, 2001____. by Mr.___, Indian Inhabitant residing at ___ (hereinafter referred to as the Guarantor, which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) in favour of Mr.___, Indian Inhabitant residing at ___ (hereinafter referred to as the Creditor, which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the OTHER PART

 

WHEREAS the Creditor has by an agreement dated___..(Give short history and the purpose of guarantee)

NOW, THEREFORE, in consideration of the mutual agreements and covenants herein contained the parties hereto agree as follows:

1.

2.

3. FOR GOOD CONSIDERATON, and as an inducement for____________________(Creditor), from time to time extend credit to ________________________(Customer), it is hereby agreed that the Guarantor does hereby guarantee to Creditor the prompt, punctual and full payment of all monies now or hereinafter due to Creditor from Customer.

 

Until termination, this guarantee is unlimited as to amount or duration and shall remain in full force and effect notwithstanding any extension, compromise, adjustment, forbearance, waiver, release or discharge of any party obligor or guarantor, or release in whole or in part of any security granted for said indebtedness or compromise or adjustment thereto, and the undersigned waives all notices thereto.

 

The obligations of the Guarantor shall be at the election of Creditor be primary and not necessarily secondary and Creditor shall not be required to exhaust its remedies as against Customer prior to enforcing its rights under this guarantee against the undersigned.

 

The Guarantee hereunder shall be unconditional and absolute and the undersigned waive all rights of subrogation and set-off until all sums under this guarantee are fully paid.

 

The Guarantor further waives all suretyship defenses or defenses in the nature thereof, generally.

 

In the event payments due under this guarantee are not punctually paid upon demand, then the Guarantor shall pay all reasonable costs and attorney's fees necessary for collection, and enforcement of this guarantee.

 

The guarantee may be terminated by the Guarantor upon fifteen (15) days written notice of termination, by Registered AD Post. Such termination shall extend only to credit extended beyond said fifteen (15) day period and not to prior extended credit, or goods in transit received by Customer beyond said date, or for special orders placed prior to said date notwithstanding date of delivery. Termination of this guarantee by any guarantor shall not impair the continuing guarantee of any remaining guarantors of said termination.

 

The Guarantor warrants and represents it has full authority to enter into this guarantee.

 

This Guarantee shall be construed and enforced under the Indian laws.

IN WITNESS whereof the said Guarantor have hereto signed the day and year first above mentioned.

SIGNED AND DELIVERED

by Mr. ___ the within named First Party

in the presence of Mr.[name]

ABSOLUTELY NO WARRANTIES ARE MADE REGARDING THE SUITABILITY OF THESE FORMS FOR ANY PARTICULAR PURPOSE. IT IS ADVISABLE THAT IMPORTANT DOCUMENTATIONS ARE PREPARED OR VETTED BY EXPERT. LEGAL ADVICE OF ANY NATURE SHOULD BE SOUGHT FROM COMPETENT, INDEPENDENT, LEGAL EXPERT IN THE RELEVANT JURISDICTION.