Guarantee for One Customer by One Surety (India)
This document is a formal personal guarantee provided by a single surety to a bank to secure the debts and liabilities of a specific customer. It ensures that the bank is protected if the customer fails to meet their financial obligations, covering loans, interest, and various banking charges.
Guarantee for One Customer by One Surety
To,
The Manager,
_________________ Bank Ltd.,
_________________________.
Dear Sir,
In consideration of your opening (or continuing) an account with ________ of ______ (hereinafter called "the customer") I _____________ of _________ hereby agree to pay and satisfy to you two days after demand upto the amount hereinafter mentioned all moneys and liabilities already advanced, paid in, incurred on such account or which you may at any time advance, pay or incur to or for the use, of accommodation of or on the credit of the customer (whether on current account or by way of opening or continuation of any new account special or otherwise in respect of, bills of exchange, promissory notes, of other negotiable securities drawn, accepted, or endorsed by him, or otherwise, howsoever), together with all interest, discount, commission and other banking charges, law and other costs, charges and expenses, which may be or may become payable in connection therewith.
Provided nevertheless that my liability on this guarantee shall not exceed in the whole the sum of Rs. ___/- and interest thereon at the rate of ________ per cent per annum from the date on which demand for payment shall have been made by you upon me.
AND I FURTHER AGREE as follows:
1. This guarantee shall be continuing guarantee and in full force until three calendar months after I shall have given or sent to you notice in writing of any intention to discontinue and determine the same and shall have paid to you all moneys up to the limit of my liability due at the expiration of such notice and in the event of my dying or becoming under disability the liability of my executors, administrators, or legal personal representatives to determine this guarantee; and you shall be at liberty on receipt of such notice at any time within and the three calendar months to open a fresh account with the customer, and to appropriate thereto all payments subsequently made to you by him and not express appropriated by him to the old account without prejudice to my said liability to the extent aforesaid.
2. You shall in any case be at liberty, and without my further assent or knowledge at any time to grant to the customer or any person liable with or for him, whether as guarantor or otherwise, any time or indulgence, and to determine, enlarge or vary his credit, and to vary, exchange or release any other securities held or to be held by you for or on account of the moneys intended to be hereby secured or nay part thereof, and to renew any bills, notes, or other negotiable securities, and to compound or make any other arrangements with him or any person to liable with or for him, as you may think fit without discharge or in any manner affecting any liability under this guarantee.
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