DEED OF GUARANTEE
THIS DEED OF GUARANTEE executed at ________________________________on
____________________by
1. Mr/Mrs. ____________________________________aged about _____ years wife/son/daughter
of __________________ residing at _______________________________________________.
2. Mr/Mrs. ____________________________________aged about _____ years wife/son/daughter
of __________________ residing at _______________________________________________.
3. Mr/Mrs. ____________________________________aged about _____ years wife/son/daughter
of __________________ residing at _______________________________________________.
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(hereinafter referred to as the "Guarantors” which expression shall, unless it be repugnant to the
subject or context thereof, include its successors and assigns and all persons deriving/claiming
title there under)
IN FAVOUR OF
AXIS Bank Ltd., a company incorporated under the Companies Act, 1956 and having its
registered Office at “Trishul’, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis
Bridge, Ahmedabad 380 006 and among other places a branch at
___________________________________________________________________ (hereinafter referred to as
the "Bank” which expression shall, unless it be repugnant to the subject or context thereof,
include its successors and assigns)
WHEREAS
a) ______________________________________________________________________(name of the
Borrower) having his/her/its office at__________________________________________________
______________________________________________(herein referred as the “Borrower”) has
requested the Bank to lend and advance Credit Facilities aggregating to
Rs__________________(Rupees_____________________________________________________________)
(hereinafter referred to as “Credit Facility”) for the purpose of ____________________________.
b) The Bank has granted/agreed to grant/continue to grant the advance to the Borrower the
said Credit Facility on the terms and conditions contained in the sanction letter ref. no.
______________________________________________ dated _________________ (hereinafter
referred to as the “Sanction Letter") and the various documents obtained/to be obtained
entered into between the Borrower and the Bank. (hereinafter referred to as the “Facility
Documentation")
c) One of the terms on which the said Credit Facility was agreed to be granted by the Bank to
the Borrower was that the said Credit Facility would, interalia, be secured by an
unconditional and irrevocable guarantee of the Guarantors, being these presents.
d) The Guarantors, at the request of the Borrower and in consideration of the Bank having
extended/agreed to extend/continue to extend the said credit facility to the Borrower on
the representation of the Borrower, have agreed to execute this Guarantee in favour of the
Bank on the terms and in the manner hereinafter appearing.
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NOW THIS DEED WITNESSETH AS FOLLOWS: -
In consideration of the Bank extending the Credit Facility to the Borrower, the Guarantors hereby
unconditionally, absolutely and irrevocably guarantees to and agrees with the Bank as follows:
1. The Bank shall have the sole discretion (i) to make disbursement(s) and/or interim
disbursement(s) out of the Credit Facility; and/or (ii) to lend and advance to the
Borrower, the said Credit Facility at such time, on such conditions and in such manner as
the Bank may decide.
2. The Guarantors shall ensure that the Borrower shall duly and punctually repay the said
Credit Facility together with all interest, liquidated damages, premium on prepayment or
on redemption, costs, expenses and other monies in accordance with the Facility
Documentation and perform and comply with all the other terms, conditions and
covenants contained in the said Facility Documentation
3. In the event of any default on the part of the Borrower in payment/repayment or any of
the monies referred to above, or in the event of any default on the part of the Borrower
to comply with or perform any of the terms, conditions and covenants contained in the
Facility Documentation, the Guarantors unconditionally and irrevocably undertakes to
pay the Bank forthwith on demand without protest or demur and without proof or
condition shall, upon demand, forthwith pay to the Bank all the amounts payable by the
Borrower under the Facility Documentation together with interest . at the rate mentioned
below on the amounts so demanded from him in the event of any delay in their making
the payment to the Bank in terms of the notice of demand issued in this behalf by the
Bank.
Credit Facility (Rs.) Rate of Interest
4. The Guarantors shall also indemnify and keep the Bank indemnified against all losses,
damages, costs, claims and expenses whatsoever which the Bank may suffer, pay or
incur by reason of or in connection with any such default on the part of the Borrower
including legal proceedings taken against the Borrower and/or the Guarantors for
recovery of the monies due under the Facility Documentation.
5. The Guarantors agrees that without the concurrence of the Guarantors, the Bank shall
be at liberty to vary, alter or modify the terms and conditions of the Facility
Documentation and of the security documents executed by the Borrower in favour of
the Bank and in particular to defer, postpone or revise the repayment of the Credit
Facility and/or payment of interest and other monies payable by the Borrower to the
Bank on the such terms and conditions as may be considered necessary by the Bank
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including any increase in the rate of interest. The Bank shall also be at liberty to absolutely
dispense with or release all or any of the security/securities furnished or required to be
furnished by the Borrower to the Bank to secure the said Credit Facility. The Guarantors
agrees that the liability under this Guarantee shall in no manner be affected by any such
variations, alterations, modifications, waiver, dispensation with or release of security, and
that no further consent of the Guarantors is required for giving effect to any such
variation, alteration, modification, waiver, dispensation with, or release of security.
6. The Bank shall have full liberty, without notice to the Guarantors and without in any way
affecting this Guarantee, to exercise at any time and in any manner any power or
powers reserved to the Bank under the Facility Documentation to enforce or forbear to
enforce payment of the Credit Facility or any part thereof or interest or other monies due
to the Bank from the Borrower or any of the remedies or securities available to the Bank,
to enter into any composition or compound with or to grant time or any other
indulgence or facility to the Borrower AND the Guarantors shall not be released by the
exercise by the Bank of their liberty in regard to the matters referred to above or by any
act or omission on the part of the Bank or by any other matter or thing whatsoever which
under the law relating to sureties would but for this provision have the effect of so
releasing the Guarantors AND the Guarantors waives in favour of the Bank so far as may
be necessary to give effect to any of the provisions of this Guarantee, all the suretyship
and other rights which the Guarantors might otherwise be entitled to enforce.
7. This Guarantee shall be enforceable against the Guarantors jointly and severally
notwithstanding that any security or securities comprised in any instrument(s) executed or
to be executed by the Borrower in favour of the Bank shall, at the time when the
proceedings are taken against the Guarantors under the Guarantee be outstanding or
unrealised or lost.
8. The Guarantors agrees and gives consent to the sale, mortgage on prior, pari-passu or
first charge basis, release etc., of any of the assets by the Borrower from time to time as
may be approved by the Bank or the transfer of any of the assets of the Borrower from
one unit to the other or to the release or lease out by the Bank any or whole of the assets
charged to the Bank on such terms and conditions as the Bank may deem fit and this
may be treated as a standing and continuing consent for each and every individual act
of transfer, mortgage, release or lease of any of the assets of the Borrower. The
Guarantors declares and agrees that no separate consent for each such transfer,
mortgage, release or lease of any of such assets would be necessary in future.
9. The Guarantors agrees and declares that the Borrower will be free to avail of further loan
or other facilities from the Bank or any other financial institution or Bank in addition to the
Credit facility and/or to secure the same during the subsistence of this Guarantee and in
that event the Guarantee herein contained will not be affected or vitiated in any
manner whatsoever but will remain in full force and effect and binding on the
Guarantors.
10. The rights of the Bank against the Guarantors shall remain in full force and effect
notwithstanding any arrangement which may be reached between the Bank and the
other Guarantors/Borrower from liability and notwithstanding that any time hereafter the
other Guarantors may cease for any reason whatsoever to be liable to the Bank, the
Bank shall be at liberty to require the performance by the Guarantors of their obligations
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hereunder to the same extent in all respects as if the Guarantors had at all times been
solely liable to perform the said obligations.
11. To give effect to this Guarantee, the Bank may act as though the Guarantors were the
principal Borrower to the Bank for all payments guaranteed by him as aforesaid to the
Bank.
12. The Guarantors declares and agrees that they have not received and shall not, without
the prior consent in writing of the Bank receive any security or commission from the
Borrower for giving this Guarantee so long as any monies remain due and payable by
the Borrower to the Bank under the Facility Documentation.
13. The Guarantors agrees and confirms that the Bank shall be entitled to adjust appropriate
or set-off all monies held by the Bank to the credit of or for the benefit of the Guarantors
on any account or otherwise howsoever towards the discharge and satisfaction of the
liability of the Guarantors under these presents.
14. The Guarantors shall not in the event of the insolvency of the Borrower prove in
competition with the Bank in the insolvency proceedings.
15. A certificate in writing signed by a duly authorised official of the Bank shall be conclusive
evidence against the Guarantors of the amount for the time being due to the Bank from
the Borrower in any action or proceeding brought under this Guarantee against the
Guarantors.
16. This Guarantee shall not be wholly or partially satisfied or exhausted by any payments
made to or settled with the Bank by the Borrower and shall be valid and binding on the
Guarantors and operative until repayment in full of all monies due to the Bank under the
Facility Documentation and the Bank issues a certificate in this regard.
17. This Guarantee shall be irrevocable and the obligations of the Guarantors hereunder
shall not be conditional on the receipt of any prior notice by the Guarantors or by the
Borrower and the demand or notice by the Bank as provided in this Guarantee hereof
shall be sufficient notice to or demand on the Guarantors.
18. The liability of the Guarantors under this Guarantee shall not be affected by:-
(i) any charge in the status of the Borrower by reason if he being declared insolvent;
or
(ii) any change in the constitution of the Bank/Guarantors.
19. This Guarantee shall be a continuing one and shall remain in full force and effect till such
time the Borrower repays in full, the said Credit Facility together with all interest, premium
on prepayment or on redemption, costs, expenses and other monies that may from time
to time become due and payable and remain unpaid to the Bank under the Facility
Documentation.
20. The liability of the Guarantors hereunder shall be to the extent of Rs.__________________
(Rupees______________________________________________________________________________
_________________________________)plus all interest, premium on prepayment or on
redemption, costs, expenses and other monies payable by the Borrower to the Bank
under the Facility Documentation or any other letter or deed. Should there be any excess
drawings of the said Credit Facility by the Borrower over and above the initial limit
sanctioned to the Borrower, for any reason whatsoever, the Guarantors shall be liable for
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the entire amount outstanding and the Guarantors expressly waive notice of such excess
drawal.
21. Any demand for payment or notice under this Guarantee shall be sufficiently given if sent
by post to or left at the last known address of the Guarantors or their heirs or executors or
administrators as the case may be, and such demand or notice so made or given, and
shall be assumed to have reached the addresses in the case of post, if given by post,
and no period of limitation shall commence to run in favour of the Guarantors until after
demand for payment in writing shall have been made or given as aforesaid and in
proving such notice when sent by post it shall be sufficiently proved that the envelope
containing the notice was posted and a certificate by any of the responsible officer of
the Bank that to the best of his knowledge and belief, the envelope containing the said
notice was so posted, shall be conclusive as against the Guarantors, even though it was
returned unserved on account of refusal of the Guarantors or otherwise.
22. The liability of the Guarantors hereunder shall not be affected by any dispute between
the Borrower and the Bank raised or pending before the Court, Tribunal or Arbitrator(s)
and the Guarantors shall remain liable under these presents notwithstanding any orders
passed therein.
23. The Guarantors shall not be entitled to the right conferred on sureties notwithstanding
anything contained in sections 133, 134,135, 139 and 141 of the Indian Contract Act,
1872.
24. The Guarantors agrees and declares that the rights and powers conferred on the Bank
by these presents may be exercised against him/her/them jointly and/or severally at the
discretion of the Bank.
25. The Guarantors shall not be discharged at any time till such time the Bank issues its
discharge in writing.
26. For the purpose of this Deed, unless the context otherwise requires, singular shall include
plural.
27. Assignment and Transfer
The Bank shall have a right to sell or transfer (by way of assignment, securitisation or
otherwise) whole or part of the Credit Facility and outstanding amounts under the Credit
Facility or any other rights and obligations of the Bank under this Deed or any other
document pursuant hereto to any person/entity in a manner or under or under such
terms and conditions as the Bank may decide in its sole discretion without reference to or
intimation to the Guarantors.
The Guarantors expressly agrees, in the event of sale or transfer as aforesaid, to accept
such person to whom the Credit Facility is sold or transferred as his lender and make the
repayment of the Credit Facility to such person as may be directed by the Bank.
The Guarantors shall not be entitled to directly or indirectly assign his rights or obligations
under this Deed in part or in whole to any person.
28. The Guarantors agrees that any admission or acknowledgement in writing by the
Borrower of the amount of indebtedness of the Borrower or otherwise as in relation to the
subject matter of the guarantee, shall be binding on the Guarantors and the Guarantors
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accepts the correctness of any statement of account served on the Borrower which is
duly certified by the Bank and the same shall be binding and conclusive as against the
Guarantors and the Guarantors further agrees that in making an acknowledgement or
making a payment the Borrower shall be treated as the authorized agent of the
Guarantors for the purpose of Indian Limitation Act, 1963.
29. The Guarantors agrees that the Bank shall not be bound to enquire into the powers of the
Borrower and the Bank has powers against the Guarantors notwithstanding any security
given or being given to the Bank may be void or defective.
30. "The Guarantor hereby agrees that, the Guarantor is liable to be treated as a Willful
defaulter in terms of the applicable RBI guidelines, in the event, the Bank makes a claim
on the Guarantor on account of the default made by the Borrower, and the Guarantor
refuses to comply with the demand made by the Bank, despite having sufficient means
to make payment of the dues."
31. Interest on the Credit Facility shall be computed and debited to the Loan Account taking
the basis of 365 days a year.
32. The Guarantor hereby agree as a pre-condition of the grant of said credit facility/ies to
the Borrower by the Bank, that in case the Borrower commits default in the repayment of
the credit facility/ies or in the repayment of interest thereon or any of the agreed
installment of the credit facility/ies on due date/s and on the Guarantor's refusal to
comply with the demand from the Bank under this guarantee, pursuant to such default of
the Borrower, the Bank or Reserve Bank of India will have an unqualified right to declare,
disclose and/or publish the name or the names of the Guarantor and its
directors/partners as willful defaulter in such manner and through such medium as the
Bank or Reserve Bank of India in their absolute discretion may think fit.
33. CIBIL disclosure clause
The Guarantors understands that as a pre-condition, relating to grant of the
loans/advances/other non-fund based Credit Facility to the Borrower and furnishing of
guarantee in relation thereto, the Bank requires consent of the Guarantors of the Credit
Facility granted/to be granted by the Bank for the disclosure by the Bank of information
relating to the Guarantors,, obligations as assumed by the Guarantors/s in relation to the
Credit Facility availed by the Borrower and default, if any, committed in discharge
thereof.
Accordingly, the Guarantors agrees and gives consent for the disclosure by the Bank of
all or any such:
1. information and data relating to Guarantors.
2. the information or data relating to Guarantors's/obligations in any credit facility
granted/to be granted by the Bank and guaranteed by the Guarantors and
3. Default, if any committed by the Guarantors in discharge of Guarantor’s
obligation as the Bank may deem appropriate and necessary to disclose and
furnish to Credit Information Bureau (India) Ltd. and any other agency authorized
in this behalf by RBI.
The Guarantors declare that the information and data furnished by the Guarantors to the
Bank are true and correct.
The Guarantors undertake that –
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1. The Credit Information Bureau (India) Ltd. and any other agency so authorized
may use, process the said information and date disclosed by the Bank in the
manner as deemed fit by them and
2. The Credit Information Bureau (India) Ltd. and other agency so authorized may
furnish for consideration, the processed information and data or products thereof
prepared by them, to Banks/Financial Institutions and other credit grantors or
registered users, as may be specified by the Reserve Bank of India in this behalf.
The Guarantor has executed the Deed of Guarantee at the place and date herein
above mentioned
Name Signature
1.
2.
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