UK lenders, get additional security from a business customer for repayment of credit by obtaining a Limited Guarantee from the principals of the business.
The guarantor guarantees repayment of the amounts payable by the customer, up to a maximum amount. The guarantor's liability will continue in force until the guarantee is terminated.
This United Kingdom Limited Guarantee is provided in MS Word format, and is fully editable to fit your needs.
LIMITED GUARANTEE THIS DEED is made on the _____ day of ______________, _______. BETWEEN: [NAME OF GUARANTOR] [address] (the ‘Guarantor’) - and - [NAME OF CREDITOR] [address] (the ‘Creditor’) Recitals A. The Creditor may, from time to time at the Guarantor's request, extend financial accommodation (‘Credit’) to [NAME OF CUSTOMER] (the ‘Customer’) on the security of this Guarantee. B. The Guarantor has acknowledged that it will gain a commercial benefit by providing this Guarantee. NOW THEREFORE the parties agree as follows: 1. As an inducement for the Creditor to extend the Credit to the Customer, the Guarantor unconditionally guarantees to the Creditor the prompt, punctual and full payment of certain sums now or hereafter due to the Creditor from the Customer, provided, however, that the liability of the Guarantor shall be limited to a maximum amount of £______________ and the Guarantor shall not be liable under this Guarantee for any greater or further amount. 2. Until termination of this Agreement, the Guarantor's liability shall remain in full force and effect, despite anything which apart from this provision might otherwise release or exonerate the Guarantor from its obligations including, without limiting the generality of the foregoing,
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