The Bank Account Guarantee serves as a critical security instrument in Canadian banking relationships, providing financial institutions with additional assurance for account holder obligations. This document is typically used when a bank requires extra security for banking facilities, credit lines, or specific account products, particularly in commercial banking relationships or where individual account holders require support from stronger financial parties. The Bank Account Guarantee must comply with Canadian federal banking regulations and provincial laws, including specific requirements for Quebec if applicable. It outlines the scope of guaranteed obligations, enforcement mechanisms, and the rights and obligations of all parties involved. The document incorporates mandatory regulatory requirements for financial consumer protection, disclosure, and, where applicable, requirements for independent legal advice. It's structured to accommodate both corporate and individual guarantors while ensuring compliance with anti-money laundering legislation and personal information protection laws.

1. Parties: Identifies the three key parties: the Bank (guarantee beneficiary), the Account Holder (primary debtor), and the Guarantor

2. Background: Sets out the context of the guarantee, including reference to the main banking relationship and the purpose of the guarantee

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Account', and 'Enforcement Event'

4. Scope of Guarantee: Clearly defines what obligations are covered by the guarantee and any limitations on the guarantee amount

5. Nature of Guarantee: Specifies that this is a continuing guarantee and defines whether it is limited or unlimited

6. Guarantor's Obligations: Details the specific obligations and responsibilities of the guarantor

7. Enforcement: Describes when and how the bank can enforce the guarantee

8. Representations and Warranties: Statements of fact and assurances given by the guarantor

9. Bank's Rights and Remedies: Outlines the rights of the bank in relation to the guarantee

10. Preserving the Guarantee: Provisions ensuring the guarantee remains valid despite changes to the underlying banking relationship

11. Payments: Specifies how and when payments under the guarantee must be made

12. Governing Law and Jurisdiction: Specifies that Canadian law governs and identifies the relevant jurisdiction for disputes