JOINT AND SEVERAL GUARANTEE IN FAVOUR OF A BNK SECURING THE ADVANCES TO BE MADE TO CUSTOMERS
TO: ___________________________________ (name of lender)
OF: ____________________________________(address of lender)
IN CONSIDERATION of your advancing to (name of principal debtor) (‘the Principal’) of (address) at my request the sum of __________ as a loan for the period of (number) years from the date of this Guarantee.
NOW I __________________________ (name of guarantor) of _______________ (address) AGREE WITH YOU as follows:
1. I will make good and guarantee any default on the part of the Principal or his estate in the payment of the loan and of all interest due on it.
2. I will deposit immediately in your hands the security or securities referred to in the Schedule to this Guarantee (‘the Security or Securities’) as collateral security for the loan until the repayment or satisfaction of it with interest at the rate of _____ % a year.
3. The Security or Securities are charged by me with the payment of the loan and interest and shall not be sold or further charged or otherwise disposed of by me in any way without your consent in writing first obtained so long as anything shall remain due to you in respect of the loan or from me under this Guarantee.
4. I will whenever required by you to do so execute at my own expense a proper transfer or proper transfers to you of so much or so many of the Security or Securities as is or are capable of being transferred together with the power of sale and all other necessary powers for securing and enforcing the repayment of the loan and interest.
5. Giving of time to the Principal or neglect or forbearance by you in requiring or enforcing payment of the loan and interest or other indulgence shall not in any way prejudice or affect my liability under this Guarantee.
