Guarantee: Difference between revisions
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==Components of a guarantee== | ==Components of a guarantee== | ||
*''[[Continuing guarantee]]''': A continuing guarantee is one where the guarantor assumes liability for all the debtor's past, present and future obligations to a creditor. Even where the amount owing has been completely paid, the guarantor can still be liable under that line of credit if there is a subsequent indebtedness. This is useful for revolving credit facilities and other forms of indebtedness with a "now you see it, now you don't" sort of a flavour to them. | *'''[[Continuing guarantee]]''': A continuing guarantee is one where the guarantor assumes liability for all the debtor's past, present and future obligations to a creditor. Even where the amount owing has been completely paid, the guarantor can still be liable under that line of credit if there is a subsequent indebtedness. This is useful for revolving credit facilities and other forms of indebtedness with a "now you see it, now you don't" sort of a flavour to them. | ||
===See Also=== | ===See Also=== | ||
*{{isdaprov|Credit Support Document}} | *{{isdaprov|Credit Support Document}} | ||
*[[Guarantees of the ISDA]] | *[[Guarantees of the ISDA]] | ||
Revision as of 09:48, 23 December 2015
Components of a guarantee
- Continuing guarantee: A continuing guarantee is one where the guarantor assumes liability for all the debtor's past, present and future obligations to a creditor. Even where the amount owing has been completely paid, the guarantor can still be liable under that line of credit if there is a subsequent indebtedness. This is useful for revolving credit facilities and other forms of indebtedness with a "now you see it, now you don't" sort of a flavour to them.