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Deed Of Guarantee And Indemnity for the Netherlands

Deed Of Guarantee And Indemnity Template for Netherlands

A formal legal document governed by Dutch law that establishes a guarantee and indemnity arrangement, typically executed as a notarial deed. The document creates binding obligations where one party (the Guarantor) guarantees the performance of another party's (the Principal Debtor) obligations to a third party (the Beneficiary). It includes specific provisions for both guarantee and indemnity obligations, enforcement mechanisms, and must comply with Dutch civil law requirements, particularly those found in the Burgerlijk Wetboek (Dutch Civil Code). The deed requires execution before a Dutch civil law notary to ensure its authenticity and enforceability.

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What is a Deed Of Guarantee And Indemnity?

The Deed of Guarantee and Indemnity is a crucial legal instrument in Dutch commercial and financial transactions, providing security and assurance for various business obligations. This document is commonly used when one party needs to guarantee the performance or payment obligations of another party, such as in loan agreements, commercial leases, or major business transactions. The deed must be executed as a notarial instrument under Dutch law, requiring the involvement of a civil law notary. It contains detailed provisions outlining the scope of the guarantee and indemnity, enforcement mechanisms, and the rights and obligations of all parties involved. The document is particularly important in situations where additional security is required beyond the principal debtor's own covenant, and it creates both primary and secondary obligations for the guarantor.

What sections should be included in a Deed Of Guarantee And Indemnity?

1. Parties: Identification of the Guarantor, the Beneficiary, and the Principal Debtor

2. Background: Context of the guarantee, reference to the principal agreement, and purpose of the guarantee

3. Definitions and Interpretation: Definitions of key terms and interpretation clauses

4. Guarantee: Core guarantee obligations, scope, and limitations

5. Indemnity: Indemnification obligations and scope

6. Nature of Guarantee and Indemnity: Specification that obligations are primary, independent, and continuing

7. Preservation of Rights: Provisions ensuring guarantee remains valid despite variations to underlying obligation

8. Payments: Payment obligations, timing, and currency provisions

9. Representations and Warranties: Guarantor's representations regarding capacity and authority

10. Undertakings: Ongoing obligations of the Guarantor

11. Enforcement and Remedies: Rights and procedures for enforcing the guarantee

12. Costs and Expenses: Allocation of costs related to preparation and enforcement

13. Notices: Communication procedures between parties

14. General Provisions: Standard boilerplate clauses including severability, amendments, and governing law

What sections are optional to include in a Deed Of Guarantee And Indemnity?

1. Security: Include when the guarantee is secured by specific assets or rights

2. Tax Gross-up: Include when payments may be subject to withholding tax

3. Currency Indemnity: Include for cross-border transactions involving multiple currencies

4. Joint and Several Liability: Include when there are multiple guarantors

5. Financial Covenants: Include when the guarantor must maintain specific financial metrics

6. Subordination: Include when the guarantee obligations need to be subordinated to other debt

7. Power of Attorney: Include when specific powers need to be granted to the beneficiary

8. Data Protection: Include when personal data processing is involved

What schedules should be included in a Deed Of Guarantee And Indemnity?

1. Form of Demand: Template for making demands under the guarantee

2. Guaranteed Obligations: Detailed description of the obligations being guaranteed

3. Security Details: Details of any security provided in support of the guarantee

4. Principal Agreement: Copy or key terms of the underlying agreement being guaranteed

5. Contact Details: Detailed contact information for all parties

6. Conditions Precedent: List of documents and conditions required before guarantee becomes effective

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Ƶ

Document Type

Indemnity Agreement

Sector

Insurance

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Banking and Finance

Real Estate

Construction

Manufacturing

Retail

Commercial Lending

Infrastructure

Energy

Telecommunications

Transportation

Healthcare

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit Control

Commercial Operations

Transaction Management

Securities Administration

Relevant Roles

Legal Counsel

Corporate Lawyer

Finance Director

Chief Financial Officer

Risk Manager

Commercial Director

Credit Manager

Compliance Officer

Treasury Manager

Contract Manager

Company Secretary

General Counsel

Banking Lawyer

Transaction Manager

Security Trustee

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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