|Document Type:||Microsoft Word|
|Build Time:||10 Min|
|Plus 1 this Document:|
This Deed of Financial Guarantee is used to appoint a guarantor for a commercial engagement, for example; if one party (the Customer) engages a Contractor to provide Good, Services or both, that Customer may require the Contractor to provide a Financial Guarantee to reduce the Customers risk.
The Contractor and Customer must be a Company or ABN business to use this deed, however the Guarantor can be a Company, ABN Business or individual. This deed is not for use when appointing a Guarantor for a loan.
This Deed of Financial Guarantee template is suitable for both conditional and unconditional financial guaranteed;
A conditional financial guarantee is provided by a bank or other financier by which the Contractor's bank or financier gives an independent guarantee to a Customer whereby the bank/financier will make funds available to the Customer in the event the Contractor defaults on its contractual obligations to the Customer under a separate supply/service agreement. Such guarantees are limited to the amount stated in the guarantee document.
An unconditional financial guarantee is where the Contractor's bank/financier gives an independent guarantee to the Customer to pay the Customer on demand any sum/sums limited to the amount specified in the guarantee.