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Guarantee Fee Agreement
"I need a Guarantee Fee Agreement for our parent company providing a corporate guarantee to our subsidiary's bank loan, with a 2% annual fee payable quarterly starting March 2025, governed by Indian law."
1. Parties: Identification of the guarantor, beneficiary, and any other relevant parties
2. Background: Context of the guarantee arrangement and the reason for the guarantee fee
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Guarantee Fee: Details of the fee structure, calculation method, and basis
5. Payment Terms: Timing, method, and currency of fee payments
6. Duration: Term of the agreement and conditions for extension or termination
7. Representations and Warranties: Standard representations by both parties regarding capacity and authority
8. Obligations of the Parties: Key responsibilities of both the guarantor and beneficiary
9. Events of Default: Circumstances constituting default and consequences
10. Termination: Grounds for termination and the process
11. Notices: Communication protocols and contact details
12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction details
13. Boilerplate Clauses: Standard clauses including entire agreement, amendments, and severability
1. Security: Include when additional security is required for the guarantee fee payments
2. Tax Provisions: Include detailed tax clauses when cross-border elements exist or specific tax arrangements are needed
3. Currency Provisions: Include when dealing with international parties or multiple currencies
4. Step-In Rights: Include when the guarantor needs rights to step into the underlying transaction
5. Assignment and Transfer: Include when parties need the ability to transfer rights or obligations
6. Force Majeure: Include when specific force majeure provisions are required beyond standard contract law
7. Confidentiality: Include when specific confidentiality obligations are needed beyond standard practice
1. Fee Calculation Schedule: Detailed methodology for calculating the guarantee fee, including any variables or formulas
2. Payment Schedule: Detailed payment dates and amounts if following a fixed schedule
3. Form of Notices: Standard templates for various notices under the agreement
4. Underlying Guarantee: Copy or details of the guarantee for which the fee is being charged
5. Contact Details: Detailed contact information for all parties and authorized representatives
6. Required Documents: List of documents to be maintained or provided during the agreement term
Authors
Banking
Financial Services
Insurance
Corporate Finance
Real Estate
Infrastructure
Manufacturing
International Trade
Construction
Project Finance
Legal
Finance
Treasury
Risk Management
Corporate Finance
Commercial
Company Secretarial
Credit
Compliance
Business Development
Chief Financial Officer
Legal Counsel
Finance Director
Treasury Manager
Risk Manager
Commercial Director
Company Secretary
Contract Manager
Banking Relationship Manager
Credit Manager
Legal Officer
Finance Manager
Corporate Finance Manager
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