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NF-370/04-2019/SESHAASAI
GUARANTEE AGREEMENT
THIS AGREEMENT made this 5th day of November
2022 Between
........................
........................
herein after termed the 'Borrower' .
2.................
...................
herein after termed the 'Guarantor'
(here write the full name and description of the Guarantors like Company/Partnership/Trust/Individuals etc.) and
CANARA
BANK, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970, having
its Head Office at Jayachamarajendra Road, Bangalore and among others an office at JARASANGAM
and represented by their Manager and duly constituted Attorney,............ hereinafter termed the 'Bank' which
expression shall be deemed to include their assigns, successors and attorneys witnesseth.
Whereas the Guarantor has requested the Bank to grant financial assistance to the Borrower by way of facilities,
including guarantees subject to the specific condition that the Guarantor shall unconditionally and irrevocably
guarantee the repayment of all amounts advanced and all liabilities guaranteed by the Bank as also all amounts which
may be advanced and all guarantees which may be issued by the Bank from this day.
And whereas in consideration of the Bank's agreeing to do so and in consideration of the Bank's agreeing at the
request of the Guarantor not to require immediate payment of any amount now due from the Borrower to the Bank
and in consideration of any sums which may hereafter be advanced by the Bank to the Borrower, and in consideration
also of the Bank's hereafter granting financial accommodation to the Borrower by way of renewal of facilities from time
to time at the discretion of the Bank without previous intimation to the Guarantor of such renewal the guarantor has
agreed to guarantee payments of all amounts due by the Borrower to the Bank subject to the terms and conditions
hereinafter set forth, and whereas the Bank has agreed thereto.
This AGREEMENT WITNESSETH that in consideration of the premises the Guarantor doth hereby agree to indemnify the
Bank against all loss and to pay and satisfy to the Bank on demand the "General Balance" due from the Borrower and
the expression "General Balance" shall be deemed to include all and every sum and sums of money and the amount of
interest at such rates as charged from time to time and claimed by the Bank, which are now or shall at any time to be
owing to the Bank in any of its offices on any account whatsoever whether the "Borrower" solely or from the Borrower
jointly with any other or others in partnership or otherwise whether as principal or surety or otherwise and whether
such liabilities have matured or not and whether they are absolute or contingent including all liabilities in respect of
advances, guarantees, letter of credit, cheques, Hundies, Bills, Notes, Drafts and other negotiable instruments, drawn,
accepted, endorsed or guaranteed by the Borrower and in respect of interest at the rate agreed upon with
monthly/quarterly rest, commission and banking charges and in respect of all costs, charges and expenses which the
Bank may incur in paying any rent, rate, taxes, duties, calls, instalments, legal and other professional charges or other
outgoings whether for the insurances, repair, maintenance, management, realization or otherwise in respect of any
property, movable or immovable or any chattels actionable claims or scrip securities or title deeds pledged, mortgaged
or assigned to or deposited with the bank as security
for the due payment and discharge of Borrower's liability to the
Bank.
The total liability enforceable against the guarantor/s under this agreement shall not exceed a sum of
Rs
....................................... (Rupees .........................................................................................
........................................................................................................................................................ ) Plus
interest
thereon at ..................... % per annum above the Marginal Cost of Funds based Lending Rate (MCLR) with a
minimum of
..................... % per annum compounded monthly/quarterly/half yearly from the date of demand by the
Bank upon the
guarantor/s for payment and expenses, charges, penal interest, etc., debited in the account from time
to time as may be
specified by the Bank. The Guarantor/s further agree/s that the above amount of
Rs.................................... (Rupees
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.......................................................................................................................................................) is
exclusive of
interest, penal interest, expenses, charges etc., debited in the account from time to time and the demand
made by the bank in this regard shall be binding on the guarantor/s.
"MCLR shall be subject to change from time to time as may be notified in Canara Bank Website and Notice Board of the
branch, which shall be conclusive notice to the guarantors."
The guarantor/s hereby specifically agrees/agree that he/she/they is/are not entitled to any reduction in the rate of
interest agreed by him/her/them at the time of sanction and also that he/she/they is/are bound to pay any upward
revision in the said rate of interest stipulated at the time of sanction and intimated by the Bank from time to time.
The guarantor/s hereby specifically agrees/agree that he/she/they waives/waive the notice of variation of interest
including enhancement form time to time as revised by the Head Office of the bank. He/she/they further agrees/agree
that such variation in the rate of interest notified in the notice board in the bank premises shall be sufficient notice to
him/her/them and that he/she/they agrees/agree to pay interest at the rate notified in the Notice Board from time to
time until all dues are cleared in full.
NOTWITHSTANDING the Borrower's account or accounts with the Bank may be brought to credit or the credit given to
the Borrower fully exhausted or exceeded howsoever the said financial accommodation be varied or changed or
renewed from time to time notwithstanding any payments from time to time or any settlement of Accounts or
payments in settlement of the balance that may be due from time to time, this guarantee shall to the extent aforesaid,
be a continuing guarantee for payment of the ultimate balance to become due to the Bank by the Borrower. The
liabilities of the Guarantors under these presents shall be construed as joint and several. This guarantee shall be a
continuing guarantee notwithstanding the death of any one or more of the Guarantors and shall be binding on the
representatives and the estates of the deceased Guarantors.
In case of discontinuance of the Guarantee as to one or more of the guarantors at the discretion of the Bank , the Bank
shall be at liberty to open a fresh account or accounts with Borrower, and to appropriate thereto all payments
subsequently made to the Bank by him or others on his behalf and to allow such amounts to be subsequently drawn
out by the Borrower, without prejudice to the liability of the guarantors under this guarantee unless the person paying
in such amounts shall at the time direct the Bank in writing specially to appropriate the same to the old account.
The Guarantor hereby consents to the bank's making any variance that the Bank may think fit in the terms of the
Bank's contract with the Borrower, to the Bank's determining, enlarging or varying any credit to the Borrower to the
Bank's making any composition with the Borrower or promising to give the Borrower time or not to sue him and to the
Bank's parting with any security the Bank may hold for the guaranteed debt. The guarantor also agrees that the
Guarantor shall not be discharged from his liability by the Bank's releasing the Borrower or by any act or omission of
the Bank legal consequence of which may be to discharge Borrower or by any act of the bank which would but for his
present provision, be inconsistent with the Guarantor's right as surety or by the Bank's omission to do any act which,
but for this present provision, the Bank's duty to the Guarantor would have required the Bank to do. Though as
between the Borrower and the Guarantor, the Guarantor is surety only, the guarantor agrees that as between the Bank
and the Guarantor, the Guarantor is the principal debtor, jointly with the Borrower. Accordingly, the Guarantor waives
all of the rights conferred on him by Sections 130, 133, 134, 135, 139 and 141 or any other relevant provision of the
Contract Act.
If the borrower shall become insolvent or enter into any arrangement, or make any composition with his creditors the
Bank may (notwithstanding payment to the Bank by the Guarantor or any other person of the whole or any part of the
amount hereby guaranteed) to rank as creditor and prove against his estate for the full amounts of the Bank's claim,
or agree to and accept any composition in respect of the same, and the Bank may and shall receive and retain the
whole of the dividends composition or other payments thereon to the exclusion of all the rights of the Guarantor in
compulation with the Bank, until the Bank's claim is fully satisfied; and Guarantor shall not by paying off the sum
guaranteed or any part thereof or upon any other ground, prove or claim to prove or respect of the sum guaranteed or
any part thereon until the whole of the Bank's claim against the Borrower has been satisfied.
Any account settled or stated by or between the bank and the Borrower or admitted by him or on his behalf may be
adduced by the Bank and shall in that case be accepted by the Guarantors and each of them and their respective
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representatives as conclusive evidence that the balance or amount thereby appearing is due from the Borrower to the
Bank.
A certificate in writing under the hand of the Manager or the Officer of the Bank stating the amount at any particular
time due and payable to it under the guarantee shall be conclusive evidence as against the Guarantor, his
representatives and estate.
The guarantee shall be in addition to and shall not in any way be prejudiced or affected by any collateral or other
security or guarantee now or hereafter to be held by the Bank.
Any notice may be served on the Guarantor personally or by sending the same in a prepaid cover to the address
registered with the Bank and when no such address is registered, to the last known place of address of the person to
be served and a notice so sent shall be deemed to be served on the third day following that on which it is posted.
I/We understand and agree that this guarantee executed is irrevocable.
In these presents the singular number shall be deemed to include the plural. Whenever the Borrower/Guarantor is an
individual it shall be deemed to include his heirs, administrators and assigns. Whenever the Borrower/Guarantor is a
Firm, Limited Company or other Corporation, Committee, Association or unincorporated body, the several expression
shall be deemed to include the members of the Firm, Limited Company or other Corporation or of any Committee or
Association or unincorporated body as the case may be, the expression 'Firm' shall be further deemed to include the
members hereof whether the same be registered or not and the constitution thereof in whatsoever manner varied by
death, insolvency, retirement or admission of members or otherwise such firm to include also all joint Hindu families
carrying on business. This guarantee shall not be affected by any change in the constitution of the Bank, its successors
or assigns, or by its absorption of or by its amalgamation with any other bank or Banks.
The guarantor hereby authorizes the borrower herein to act as his agent to give acknowledgement of liability in respect
of the "General balance" due under this agreement from time to time. The Guarantor hereby declares that he is at all
times bound by such acknowledgements of liability given by the Borrower from time to time.
The guarantor hereby agrees as a pre-condition for granting assistance to the borrower by the Bank that, in case the
borrower and guarantor commit default in repayment of the loan / advances or in the repayment of interest thereon or
any of the agreed instalment of the loan on the due date / s, the Bank and / or the Reserve Bank of India will have an
unqualified right to disclose or publish his / her / their name or the name of the Company /firm / unit and its directors
/ partners / proprietors along with the photographs of borrowers and guarantors in such manner and through such
medium as the Bank or Reserve Bank of India in their absolute discretion may think fit.
I/We understand that as a pre-condition, relating to grant of the loans/advances/other non-fund based credit facilities
to*
..........................................................................................................................................................
........................................................................................................................ (*name of the borrower/s)
and
furnishing of guarantee in relation thereto, Canara Bank, requires consent of the guarantor/s of the credit facility,
granted./ to be granted by the Bank for disclosure of information and data relating to the guarantor/s, any credit
facility availed of by the
guarantor/s, obligation as assumed by the guarantor/s, in relation thereto and default, if any,
committed in discharge thereof
i) Accordingly, I/We, hereby agree and give consent for the disclosure by the Canara Bank of all or any such:
a. Information and data relating to me/us.
b. The information or data relating to any credit facility availed of/to be availed, by me/us, and
c. Default, if any, committed by me/us, in discharge of my/our such obligation as Canara Bank may deem appropriate
and necessary to disclose and furnish to Credit Information Companies (CICs) and any other agency authorized in this
behalf by RBI.
ii) I/We declare that the information and data furnished by me/us to the Canara Bank are true and correct.
iii) I/We undertake that:
a. the Credit Information Companies (CICs) and any other agency so authorized may use, process the said
information and data disclosed by the Bank in the manner as deemed fit by them; and
b. the Credit Information Companies (CICs) and any other agency so authorized may furnish for consideration, the
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processed information and data or products thereof prepared by them, to banks/financial institutions and other credit
granters or registered users, as may be specified by the Reserve Bank of India in this behalf.
Further, I/We hereby confirm that I/We shall not raise any dispute in whatsoever manner regarding information/details
furnished/to be furnished to CICs/other authorities and same is binding on me/us.
The Guarantor hereby gives specific consent to the Bank/Lender for disclosing / submitting the 'financial information'
as defined in Section 3 (13) of the Insolvency and Bankruptcy Code, 2016 ('Code' for brief) read with the relevant
Regulations/ Rules framed under the Code, as amended and in force from time to time and as specified there under
from time to time, in respect of the guarantees given, securities created for securing the Credit/Financial facilities
availed by the Borrower from the Bank/Lender, from time to time, to any 'Information Utility' ('IU' for brief) as defined
in Section 3 (21) of the Code, in accordance with the relevant Regulations framed under the Code, and directions
issued by Reserve Bank of India to the banks from time to time and hereby specifically agree to promptly authenticate
the 'financial information' submitted by the
Bank/Lender, as and when requested by the concerned 'IU'.
Borrower Guarantor
Bank
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