In the event of any default on the part of the Principal Debtor, you will be liable to pay the due amount of the loan along with interest accrued and any charges and fees applicable thereon within 07 (seven) working days of the receipt of your first demand notice without raising any question/argument or referring to the Principal Debtor.
In the event of failure to pay the guaranteed amount within the stipulated time, you will be liable to pay any late payment fees, charges, compensations, etc., decided by the bank from time to time until the payment is made.
Your liability under this loan contract is co-extensive with that of the Principal Debtor. In respect of the said loan, the bank shall be entitled to implead you as a defendant at the time of filing any suit against the Principal Debtor. Any judgment, order, or decree passed by the Court shall be enforceable against all defendants jointly and severally, and the execution proceedings in respect of the decree shall be carried out simultaneously against all defendants/obligors. Provided, however, that during realization under such decree, the Court shall, to the extent possible, first proceed against the assets of the Principal Debtor and thereafter, in due order, against the properties of the third-party mortgagor and, as guarantor, against your property.
This guarantee shall be a continuous security and shall remain valid until the amount due from the Principal Debtor is fully paid.
This guarantee shall not be discharged or ceased by any partial payment of the loan by the Principal Debtor or by the guarantor.
Your liability under this guarantee shall not be affected, nor shall this guarantee be discharged by reason of the bank granting more time to repay the loan or indulgence or concession to the Principal Debtor, or due to any change in the terms & conditions of the loan contract, if prior consent has been taken from you.
This guarantee constitutes a legally binding obligation upon you and your successors. It shall remain effective notwithstanding any change in the constitution (Articles of Association and Memorandum of Association) of the bank or due to the event of amalgamation, merger, or acquisition of the bank.
This instrument sets forth the terms and conditions of the guarantee, and the same shall not in any way be modified, amended, or amplified by reference to any document or instrument referred to herein or to which this guarantee relates without a written instrument signed between the bank and the guarantor.
This guarantee can be terminated through a written agreement between the parties (the bank & the guarantor) hereto as per the terms agreed mutually.
Upon the full and final repayment of the loan, this guarantee shall cease to continue forthwith, and the borrower will return this guarantee to you.
This guarantee shall be construed and governed by the existing laws of Bangladesh.
This guarantee shall be treated as an instrument legally enforceable at any appropriate court of law in Bangladesh, as is the issue of failure to repay, enforceable against the Principal Debtor.
Any notice from the bank, by way of demand, request or otherwise hereunder, may be sent at the address of the guarantor mentioned here or at his/her last known address, shall be deemed to have been duly served when the same has been sent through registered post.
You hereby also declare that you shall not do or cause anything to be done which may undermine or impair the value of any security held by the bank against the indebtedness hereby guaranteed or, in case of bankruptcy of the Principal Debtor or of a co-surety, shall not prove in competition until the full amount is repaid.
