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Guarantee And Indemnity Form Template for Singapore

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Key Requirements PROMPT example:

Guarantee And Indemnity Form

"Need a Guarantee And Indemnity Form for our Singapore subsidiary to guarantee a S$5 million loan facility from DBS Bank to our Malaysian manufacturing operation, to be executed by March 2025."

Document background
The Guarantee And Indemnity Form is a crucial legal instrument in Singapore's commercial landscape, commonly used in financing transactions, property deals, and business arrangements. This document serves dual purposes: as a guarantee, it creates a secondary obligation where the Guarantor becomes liable upon the Principal Debtor's default; as an indemnity, it creates a primary obligation independent of the underlying transaction. The form must comply with Singapore's statutory requirements, including the Civil Law Act and Contracts Act, and typically includes detailed provisions on the scope of guaranteed obligations, enforcement mechanisms, and the Guarantor's rights and obligations.
Suggested Sections

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

2. Background: Context of the underlying transaction and reason for guarantee

3. Definitions: Key terms used throughout the document including 'Guaranteed Obligations', 'Security', etc.

4. Guarantee and Indemnity: Core obligations of the guarantor, including both guarantee and indemnity provisions

5. Nature of Guarantee: Specification that the guarantee is continuing, unconditional and irrevocable

6. Preservation of Rights: Creditor's rights preservation and non-discharge provisions

7. Payments: Payment obligations, timing, and method

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

9. Governing Law and Jurisdiction: Specification of Singapore law and courts' jurisdiction

Optional Sections

1. Security Provisions: Details of any security provided - used when guarantee is secured by assets

2. Additional Guarantor Provisions: Mechanism for adding additional guarantors - used when multiple or future guarantors are contemplated

3. Currency Provisions: Currency conversion and payment provisions - used when dealing with cross-border transactions

4. Assignment: Rights of assignment by parties - used when assignment rights are required

5. Joint and Several Liability: Provisions for multiple guarantors - used when there are multiple guarantors

Suggested Schedules

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 by the guarantor

4. Additional Guarantor Accession Deed: Form for adding new guarantors

Authors

Alex Denne

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

Relevant legal definitions




















Clauses




















Industries

Civil Law Act (Cap. 43): Primary legislation governing civil law matters in Singapore, particularly focusing on contracts and guarantees, including requirements for writing and signatures

Contracts Act (Cap. 53): Fundamental legislation governing contract formation, validity, and consideration requirements in Singapore

Statute of Frauds: Legal requirements stipulating that guarantees must be in writing and properly signed to be enforceable

Common Law Principles: Established legal principles regarding guarantees and indemnities, including rules on discharge of guarantees and guarantors' rights

Banking Act (Cap. 19): Legislation governing financial institutions and regulatory requirements for bank guarantees in Singapore

Unfair Contract Terms Act (Cap. 396): Legislation protecting guarantors from unfair terms and restricting the use of exclusion clauses in contracts

Limitation Act (Cap. 163): Legislation setting time limits for enforcement and prescription periods for legal actions related to guarantees

MAS Guidelines: Regulatory guidelines from the Monetary Authority of Singapore applicable to guarantees in regulated financial activities

Practice Requirements: Essential practical considerations including clear distinction between guarantee and indemnity obligations, disclosure requirements, subrogation rights, and enforcement mechanisms

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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