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Bank Credit Guarantee
"I need a Bank Credit Guarantee agreement under Malaysian law where ABC Manufacturing Sdn Bhd will act as corporate guarantor for XYZ Trading's credit facility of RM 5 million from Maybank, with the guarantee period starting from March 1, 2025."
1. Parties: Identification of the Guarantor, Bank (as beneficiary), and Principal Debtor
2. Background: Recitals explaining the underlying credit facility and purpose of the guarantee
3. Definitions and Interpretation: Definitions of terms used and rules of interpretation
4. Guarantee and Indemnity: Core guarantee obligations, including scope and extent of the guarantee
5. Maximum Liability: Specification of the guarantee amount and any limitations
6. Continuing Security: Provisions establishing the guarantee as a continuing obligation
7. Representations and Warranties: Guarantor's confirmations about their capacity and authority
8. Protection of Bank's Rights: Provisions preserving the bank's rights and remedies
9. Payments: Payment obligations, currency, and payment mechanics
10. Interest: Interest provisions on guaranteed amounts and default interest
11. Costs and Expenses: Allocation of costs, including enforcement expenses
12. Discharge and Release: Conditions for discharge of guarantee obligations
13. Communications: Notice provisions and contact details
14. Assignment and Transfer: Rights to assign or transfer the guarantee
15. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction provisions
1. Multiple Guarantors: Additional provisions for joint and several liability when there are multiple guarantors
2. Security Provisions: Where additional security is provided alongside the guarantee
3. Foreign Currency Provisions: For guarantees involving foreign currency obligations
4. Islamic Banking Provisions: Additional provisions for Shariah-compliant guarantees
5. Corporate Guarantor Provisions: Special provisions when guarantor is a corporation
6. Counter-Indemnity: Where counter-indemnities are required from other parties
7. Priority Arrangements: Where the guarantee ranks alongside other security or guarantees
8. Step-In Rights: Bank's rights to step into debtor's position in specific circumstances
1. Schedule 1 - Facility Details: Details of the underlying credit facility being guaranteed
2. Schedule 2 - Conditions Precedent: List of documents and conditions required before guarantee becomes effective
3. Schedule 3 - Form of Demand: Prescribed form for making demands under the guarantee
4. Schedule 4 - Security Documents: List of related security documents (if applicable)
5. Schedule 5 - Notice Details: Detailed contact information for all parties
6. Appendix A - Board Resolution: Format of corporate authorization (for corporate guarantors)
7. Appendix B - Compliance Certificate: Format for periodic compliance certification if required
Authors
Banking and Financial Services
Commercial Lending
Corporate Finance
Small and Medium Enterprises
Real Estate
Manufacturing
Trading and Distribution
Construction
Agriculture
Retail
Technology
Legal
Compliance
Credit Risk
Corporate Banking
SME Banking
Operations
Credit Administration
Documentation
Risk Management
Treasury
Corporate Advisory
Business Development
Credit Risk Manager
Banking Relationship Manager
Legal Counsel
Compliance Officer
Credit Analysis Officer
Corporate Banking Manager
SME Banking Officer
Chief Risk Officer
Financial Controller
Company Secretary
Banking Operations Manager
Credit Documentation Officer
Security Documentation Specialist
Treasury Manager
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