Guarantee And Indemnity Agreement Template for Singapore

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Key Requirements PROMPT example:

Guarantee And Indemnity Agreement

"I need a Guarantee and Indemnity Agreement under Singapore law for our company to guarantee a SGD 2 million loan facility being provided to our subsidiary, with the agreement to be effective from March 1, 2025."

What is a Guarantee And Indemnity Agreement?

A Guarantee And Indemnity Agreement is commonly used in Singapore when additional security is required for commercial transactions or financial obligations. This document combines both guarantee and indemnity provisions, offering comprehensive protection to creditors against default or non-performance by principal debtors. It's particularly relevant in banking, property, and commercial contexts where credit risk needs to be managed. The agreement must comply with Singapore's Civil Law Act and related legislation, requiring written form and clear terms regarding the scope of guaranteed obligations and enforcement mechanisms.

What sections should be included in a Guarantee And Indemnity Agreement?

1. Parties: Identification of guarantor, creditor, and principal debtor

2. Background: Context of the guarantee, reference to principal agreement

3. Definitions: Key terms used throughout the agreement

4. Guarantee and Indemnity: Core obligations of guarantor including scope of guarantee

5. Nature of Guarantee: Continuing security, principal debtor provisions

6. Preservation of Rights: Creditor's rights preservation clauses

7. Payments: Payment terms, timing, and method

8. Representations and Warranties: Guarantor's declarations regarding capacity and authority

What sections are optional to include in a Guarantee And Indemnity Agreement?

1. Security Provisions: Additional security arrangements - used when additional security is provided

2. Corporate Guarantor Provisions: Specific provisions for corporate guarantors - used when guarantor is a company

3. Multiple Guarantors: Joint and several liability provisions - used when more than one guarantor

What schedules should be included in a Guarantee And Indemnity Agreement?

1. Principal Agreement: Copy or details of the agreement being guaranteed

2. Guaranteed Obligations: Detailed list of obligations covered by guarantee

3. Corporate Authorizations: Required when guarantor is a company - board resolutions etc.

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Civil Law Act (Cap. 43): Key legislation governing guarantees in Singapore, particularly Section 6 requiring guarantees to be in writing and Section 4 on contractual formalities

Contracts (Rights of Third Parties) Act (Cap. 53B): Legislation governing how third parties may enforce contractual terms in the guarantee agreement

Unfair Contract Terms Act (Cap. 396): Regulates the reasonableness of contract terms and limitations on exclusion clauses in guarantee agreements

Contract Law Principles: Common law principles including consideration, capacity to contract, intention to create legal relations, and requirement for clear and unambiguous terms

Guarantee-Specific Principles: Common law principles specific to guarantees including co-extensiveness with principal debt, rights of subrogation, and rules regarding discharge of guarantor

Companies Act (Cap. 50): Relevant when corporate guarantors are involved, covering authority to provide guarantees and corporate benefit requirements

Banking Act (Cap. 19): Applicable when the guarantee involves regulated financial institutions

Bankruptcy Act (Cap. 20) and Insolvency, Restructuring and Dissolution Act 2018: Governs the impact of guarantor's bankruptcy and provisions regarding void and voidable transactions

Money-lending legislation: Relevant when the guarantee relates to money-lending transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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