Deeds of Guarantee & Indemnity (Loans) can be used in conjunction with Loan Agreements that do not provide guarantees or require further guarantees. The Deed is an agreement by both parties that the Debtor guarantees to perform their duties under the Loan Agreement properly (or have a guarantor) and if they do there will be no comeback by the Lender. Effectively, one party financially protects another against an anticipated loss and this is particularly important when there is doubt as to the financial position of parties.
There are three versions covering loans from an individual to a company, a company to company or an individual to individual. There is also a Deed for Transactions (where there is no loan agreement).