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About this template
What is this template?
This document is a personal guarantee for bank liabilities expressed in Indian Rupees. It is not a corporate guarantee or a performance bond for construction, but specifically covers 'moneys and liabilities already advanced' and future bank charges. It contains a specific two-day payment window following a formal demand.
When should you use it?
Use this document when a bank requires a third party to personally back the debts of a borrower using a 'continuing' liability structure. If the guarantor is a company rather than an individual, use a Corporate Guarantee instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| Introduction | Payment Obligation | The Surety agrees to pay all moneys and liabilities of the Customer within two days after a demand is made by the Bank Manager. |
| Proviso | Liability Limit | Total liability is capped at a specific sum in Rs. plus interest at a defined percentage per annum from the date of demand. |
| 1 | Discontinuance and Determination | This continuing guarantee remains in force until three calendar months after the Surety provides written notice of intention to discontinue. |
| 2 | Indulgence and Variation | The Bank may grant the Customer time or vary credit terms without the Surety's assent or discharging the Surety's liability. |
| 3 | Insolvency of Customer | The Bank retains the right to prove for its full claim in the Customer's bankruptcy to the exclusion of the Surety's rights. |
| 5 | Scope of Accounts | The guarantee extends to all accounts of the Customer whether held solely or jointly with any other person or company. |
Who it's for
- an individual acting as a surety for a bank customer's credit facilities in India
- a bank manager requiring a personal guarantee for a new or existing rupee account
- a legal representative of a surety determining liability following the surety's death
How long it runs and how it's signed
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