From The Jolly Contrarian
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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.
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