Part of the Global Financial Markets book series (GFM)
The guarantee itself is contained in three separate provisions. First comes Clause 18.1(a) which reads as follows
This paragraph (a) is sometimes referred to as a ‘see to it’ guarantee. It is a promise that each borrower will fulfil its obligations. If the borrower fails to fulfil its obligations, the guarantor is immediately in breach of this ‘see to it’ promise and will be liable in damages. A guarantee may be an ‘all moneys’ guarantee — guaranteeing whatever the borrower owes the lenders from time to time; or it may relate to a specific transaction. In the context of major financings, all moneys guarantees are unusual.Each Guarantor irrevocably and unconditionally jointly and severally: 2
guarantees to each Finance Party punctual performance by each Borrower of all that Borrower’s obligations under the Finance Documents;
KeywordsFinance Document Term Loan Risk Avoidance Original Loan Primary Obligation
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© Sue Wright 2014