81,912
edits
Guarantee checklist: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) (Created page with "{| class="wikitable sortable" |+ Caption text {{aligntop}} ! Term !! Explanation !! Comment {{aligntop}} | '''Consideration'''|| Is there consideration for the guarantee|| {...") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 2: | Line 2: | ||
|+ Caption text | |+ Caption text | ||
{{aligntop}} | {{aligntop}} | ||
! | ! Issue !! Narrative !! Comment | ||
{{aligntop}} | {{aligntop}} | ||
| '''Consideration'''|| Is there consideration for the guarantee|| | | '''Consideration'''|| Is there consideration for the guarantee|| | ||
{{aligntop}} | {{aligntop}} | ||
| Permanence || Is | | '''Permanence''' || Is it unconditional, irrevocable and continuing || | ||
{{aligntop}} | {{aligntop}} | ||
|rowspan="6"| '''Unaffected'''|| Is | |rowspan="6"| '''Unaffected'''|| Is it unaffected by: || | ||
{{aligntop}} | {{aligntop}} | ||
| interim payments || | | interim payments || | ||
| Line 20: | Line 20: | ||
| other customary grounds for discharge of guarantees || | | other customary grounds for discharge of guarantees || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Punctual performance''' || | | '''Punctual performance''' || Does it guarantee the obligor’s “punctual performance”|| | ||
{{aligntop}} | {{aligntop}} | ||
| '''Without prejudice'''|| | | '''Without prejudice'''|| Is it without prejudice to beneficiary’s rights against obligor || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Independence''' || | | '''Independence''' || Is it independent of any other credit support arrangement between beneficiary and obligor. || | ||
{{aligntop}} | {{aligntop}} | ||
|rowspan="2"| '''Indemnity''' || | |rowspan="2"| '''Indemnity''' || Is there an indemnity against beneficiary’s costs of enforcement of guaranteed obligations || | ||
{{aligntop}} | {{aligntop}} | ||
| | | Is there an indemnity wrt the value of obligations which are void/unenforceable against the obligor || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Currency and payment'''|| | | '''Currency and payment'''|| Must payment must be in immediately available funds in the currency of the underlying obligations|| | ||
{{aligntop}} | {{aligntop}} | ||
| '''No set-off or counterclaim'''|| | | '''No set-off or counterclaim'''|| Is set-off or counterclaim against moneys beneficiary owes the guarantor excluded || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Interest''' ||interest from the date of demand until payment in full || | | '''Interest''' || Must guarantor pay interest from the date of demand until payment in full || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Suspense account'''||beneficiary | | '''Suspense account'''|| May beneficiary place amounts beneficiary into a suspense account pending satisfaction in full || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Demand process'''|| | | '''Demand process'''|| May beneficiary demand without first taking steps vs the obligor || | ||
{{aligntop}} | {{aligntop}} | ||
|'''No discharge if prejudice''' || | |'''No discharge if prejudice''' ||May beneficiary decline to discharge the guarantee if itmight prejudice its claim under insolvency laws || | ||
{{aligntop}} | {{aligntop}} | ||
|'''Reinstatement''' || If beneficiary discharges guarantee | |'''Reinstatement''' || If beneficiary discharges guarantee is guarantor’s liability reinstated should payments be set aside || | ||
|| | |||
{{aligntop}} | {{aligntop}} | ||
| '''Guarantor’s rights versus obligor'''|| | |rowspan="2"| '''Guarantor’s rights versus obligor'''|| Must Guarantor obtain beneficiary’s consent before taking action against obligor until guaranteed obligations are fully paid || | ||
{{aligntop}} | {{aligntop}} | ||
| '''Tax gross-up'''|| | | Must guarantor hold sums it receives from the obligor in those circumstances to beneficiary’s order|| | ||
{{aligntop}} | |||
| '''Tax gross-up'''|| Must guarantor gross up if subject to withholding on guarantee payments|| | |||
|} | |} | ||