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The Continuing Guarantee Agreement is a crucial financial security instrument in Malaysian commercial practice, commonly used when a lender requires additional security beyond the borrower's own covenant. This document type is particularly relevant when a parent company guarantees its subsidiary's obligations, or when directors or shareholders personally guarantee corporate borrowings. The agreement, governed by Malaysian law, specifically the Contracts Act 1950 and Financial Services Act 2013, establishes an ongoing guarantee that remains effective until properly terminated, covering both existing and future obligations. It includes detailed provisions for enforcement, guarantor's obligations, lender's rights, and necessary Malaysian law compliance requirements, including proper stamping under the Stamp Act 1949.

1. Parties: Identification of the Guarantor, Principal Debtor (borrower), and Beneficiary (lender)

2. Background: Context of the guarantee, reference to the primary facility/agreement being guaranteed

3. Definitions and Interpretation: Key terms used in the agreement, including 'Guaranteed Obligations', 'Security', and interpretation rules

4. Guarantee and Indemnity: Core guarantee obligations, scope of the continuing guarantee, and indemnity provisions

5. Nature of Guarantee: Specification that this is a continuing security, covering present and future obligations

6. Preservation of Rights: Lender's rights preservation, including ability to pursue guarantor without first pursuing borrower

7. Representations and Warranties: Guarantor's confirmations about their capacity and authority to enter into the guarantee

8. Payments: Payment obligations, currency, method, and timing of payments

9. Costs and Expenses: Responsibility for legal fees, stamp duty, and enforcement costs

10. Duration and Release: Terms for the continuation and termination of the guarantee

11. Notices: Communication requirements and contact details

12. Assignment and Transfer: Rights to assign or transfer the guarantee

13. Governing Law and Jurisdiction: Specification of Malaysian law and courts' jurisdiction