Letter of Guarantee and
Indemnity
To,
.........................................
.........................................
1.
In
consideration of your agreeing to grant lease of ................ to
................ (hereinafter referred to as "the lessee") under the
terms of a lease agreement proposed to be made between yourselves and the
lessee of the equipment specified in the Schedule to the said lease agreement
and more particularly described in the Schedule hereto, we the undersigned
hereby jointly and severally guarantee on demand by you the punctual payment by
the lessee all lease rentals, interest, all other sums whatsoever due and the
Agreed loss Value referred to in Articles .......... and the Schedule of the
lease agreement and the due performance and observance of ail the lessee's
covenants and obligations thereunder and we further undertake to jointly and
severally indemnify and keep you indemnified against all losses, claims,
damages, demands, charges and proceedings incurred or suffered by you in
consequence of any failure by the lessee to perform any of the lessee's
covenants and obligations under the lease agreement.
2.
We
jointly and severally agree that any notice in writing by you about the
indebtedness of the lessee about the lease rentals and other sums whatsoever
due under the lease agreement shall be conclusive evidence against us and we
shall pay the said sum to you within .................... days of service of
notice by you in this regard.
3.
We
further jointly and severally agree that: (i) our liability under this
guarantee and indemnity shall be as principal debtors and shall be a continuing
guarantee and shall be irrevocable; (ii) our liability shall subsist whether or
not you have availed legal right or remedies against the lessee or not; (iii)
our liability shall also extend to cover any renewal or renewals of the lease
agreement; and (iv) this guarantee and indemnity shall not be affected or
prejudiced by any other guarantee/indemnity and any other form of security now
or hereafter held by the lessor.
4.
Our
liability under this guarantee shall not in any way be discharged, diminished
or affected: (i) By the grant of time or indulgence to the lessee or by
effecting any compromise with the lessee or any agreement not to sue the lessee
or any variations of the terms of the lease agreement. (ii) Any change in the
constitution of the lessee.
5.
Our
liability under this guarantee shall be in addition to any security or
additional security obtained by you from the lessee and the loss, impairment,
realisation or release of any security will not in any way diminish or affect
our liability.
6.
Any
waiver, forbearance or indulgence granted by you to us or any of us shall not
affect our liability to you hereunder and this guarantee and indemnity shall
bind our respective heirs, representatives, executors, successors and assigns
and shall not be determined or affected by the heath or incapacity of any one
of us.
The Schedule above
referred to
(1) Signature
...................................
Full Name
......................................
Description and
address .................
(2) Signature
.......................................
Full Name
......................................
Description and
address ......................
WITNESSES;
1.
2.
