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Continuing Guarantee Agreement
"Need a Continuing Guarantee Agreement for our company to guarantee a £5 million business loan to our subsidiary, with the guarantee period starting from March 2025 and including provisions for multiple future drawdowns."
1. Parties: Identification of guarantor, creditor, and principal debtor
2. Background: Context of the guarantee and underlying obligations
3. Definitions: Key terms used throughout the agreement
4. Guarantee and Indemnity: Core obligations of the guarantor including primary guarantee provisions and indemnity terms
5. Nature of Guarantee: Continuing nature and scope of the guarantee, including duration and extent of liability
6. Preservation of Rights: Creditor's rights and their preservation, including non-discharge provisions
7. Payments: Payment obligations, mechanisms, and timing requirements
8. Representations and Warranties: Guarantor's confirmations and assurances regarding capacity and authority
9. Governing Law and Jurisdiction: Choice of law (England and Wales) and jurisdiction provisions
1. Security Provisions: Additional security arrangements and terms when guarantee is secured against assets
2. Currency Provisions: Currency conversion and payment terms for cross-border guarantees
3. Tax Gross-up: Provisions for tax-related payments and deductions
4. Transfer Provisions: Assignment and transfer rights for parties involved
1. Form of Demand: Standard template for making demands under the guarantee
2. Underlying Obligations: Detailed schedule of the obligations being guaranteed
3. Security Documents: List and copies of related security documents when guarantee is secured
4. Conditions Precedent: List of documents and conditions required before guarantee becomes effective
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