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Deed of Financial Guarantee

Deed of Financial Guarantee
Document Type: Microsoft Word
Build Time: 10 Min
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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.

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