A Release of Guarantee Agreement is utilized when parties wish to formally terminate guarantee obligations, typically following the satisfaction of underlying obligations or as part of a broader restructuring arrangement. Under Singapore law, this document must be carefully drafted to ensure compliance with statutory requirements and to provide clear evidence of the parties' intention to release the guarantee. The agreement typically includes details of the original guarantee, the scope of the release, and any conditions attached to the release. This document is particularly important as it provides legal certainty and protection for the guarantor against future claims.
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Key Requirements PROMPT example:
Release Of Guarantee Agreement
"I need a Release of Guarantee Agreement under Singapore law to release my company as guarantor from a corporate guarantee provided to ABC Bank Limited in relation to a facility agreement dated 15 March 2025, where the underlying loan has been fully repaid."
1. Parties: Identification of guarantor being released and party providing the release
2. Background: Details of original guarantee and circumstances leading to release
3. Definitions: Key terms used in the agreement including 'Original Guarantee', 'Principal Debtor', etc.
4. Release: Core provision releasing guarantor from obligations under original guarantee
5. Effective Date: When the release takes effect
6. Governing Law: Specification of Singapore law as governing law
1. Partial Release: Used when only certain obligations are being released while others remain in effect
2. Return of Documents: Provisions regarding return of original guarantee documents when physical guarantee documents exist
3. Surviving Obligations: Specifies any obligations that survive the release when certain obligations are intended to continue
1. Original Guarantee: Copy or details of the guarantee being released
2. Related Security Documents: List of related security documents affected by the release
3. Corporate Authorizations: Where corporate parties are involved, relevant board resolutions or authorizations
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