82,090
edits
Guarantee checklist: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 4: | Line 4: | ||
! Issue !! Narrative !! Comment | ! Issue !! Narrative !! Comment | ||
{{aligntop}} | {{aligntop}} | ||
| '''Consideration'''|| Is there consideration | | '''Consideration'''|| Is there consideration?|| | ||
{{aligntop}} | {{aligntop}} | ||
| '''Permanence''' || Is it unconditional, irrevocable and continuing || | | '''Permanence''' || Is it unconditional, irrevocable and continuing? || | ||
{{aligntop}} | {{aligntop}} | ||
|rowspan=" | |rowspan="5"| '''Unaffected'''|| Is it unaffected by:<br> | ||
*interim payments | |||
|| | |||
{{aligntop}} | {{aligntop}} | ||
| | | | ||
*obligor’s insolvency | |||
|| | |||
{{aligntop}} | {{aligntop}} | ||
| obligor’s | | | ||
*amendment or discharge of obligor’s obligations | |||
|| | |||
{{aligntop}} | {{aligntop}} | ||
| | | | ||
*beneficiary’s waiver or forbearance to obligor | |||
|| | |||
{{aligntop}} | {{aligntop}} | ||
| | | | ||
*other customary grounds for discharge of guarantees | |||
|| | |||
{{aligntop}} | {{aligntop}} | ||
| | | '''Punctual performance''' || Does it guarantee the obligor’s “punctual performance”?|| | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | | '''Without prejudice'''|| Is it without prejudice to beneficiary’s rights against obligor?|| | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | | '''Independence''' || Is it independent of any other credit support arrangement between beneficiary and obligor?|| | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | |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'''|| Must payment must be in immediately available funds in the currency of the underlying obligations?|| | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | | '''No set-off or counterclaim'''|| Is set-off or counterclaim against moneys beneficiary owes the guarantor excluded? || | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | | '''Interest''' || Must guarantor pay interest from the date of demand until payment in full? || | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | | '''Suspense account'''|| May beneficiary place amounts beneficiary into a suspense account pending satisfaction in full? || | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | | '''Demand process'''|| May beneficiary demand without first taking steps vs the obligor?|| | ||
{{aligntop}} | {{aligntop}} | ||
| ''' | |'''No discharge if prejudice''' ||May beneficiary decline to discharge the guarantee if it might prejudice its claim under insolvency laws? || | ||
{{aligntop}} | {{aligntop}} | ||
|''' | |'''Reinstatement''' || If beneficiary discharges, is guarantor’s liability reinstated should obligor’s payments be set aside? || | ||
{{aligntop}} | {{aligntop}} | ||
|''' | |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}} | ||
| | | Must guarantor hold sums it receives from obligor pending satisfaction to beneficiary’s order|| | ||
{{aligntop}} | {{aligntop}} | ||
| '''Tax gross-up'''|| Must guarantor gross up if subject to withholding on guarantee payments?|| | |||
| '''Tax gross-up'''|| Must guarantor gross up if subject to withholding on guarantee payments|| | |||
|} | |} | ||