Guarantee And Indemnity Form Template for Malaysia

The Guarantee And Indemnity Form is a vital legal instrument in Malaysian commercial and financial transactions, commonly used when financial security is required for loans, credit facilities, or other obligations. This document is structured in accordance with Malaysian law, particularly the Contracts Act 1950 and relevant financial regulations. It serves a dual purpose by incorporating both guarantee provisions (contingent liability dependent on the principal debtor's default) and indemnity provisions (primary liability independent of the principal obligation). The document is essential in situations where additional security is required beyond the principal debtor's covenant, such as in corporate borrowing, property purchases, or project financing. It includes comprehensive provisions for enforcement, continuing security, and remedies, making it a robust security instrument for beneficiaries while clearly defining the obligations and liabilities of guarantors.

1. Parties: Identification of the Guarantor(s), Principal Debtor, and Beneficiary with complete details

2. Background: Context of the primary obligation and reason for the guarantee and indemnity

3. Definitions: Definitions of key terms used throughout the document

4. Guarantee: Core guarantee provisions, including scope and extent of the guarantee

5. Indemnity: Indemnity obligations of the guarantor

6. Continuing Security: Clause establishing the guarantee as a continuing security

7. Representations and Warranties: Guarantor's representations regarding capacity and authority

8. Payment Provisions: Terms and conditions for making payments under the guarantee

9. Enforcement: Rights and remedies of the beneficiary in case of default

10. Discharge and Release: Conditions for discharge of guarantor's obligations

11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction