Quasi-security

Q&As

Can a creditor claim in a liquidation where their debt is secured against a third party guarantor's property?

Can a creditor claim in a liquidation where their debt is secured against a third party guarantor's property?A guarantee is an agreement between one...

1st Aug

Q&As

If a limited liability partnership goes into administration, can a partner set-off a capital account (in credit) against amounts outstanding on an overdrawn current account?

If a limited liability partnership goes into administration, can a partner set-off a capital account (in credit) against amounts outstanding on an...

1st Aug

Q&As

Is there anything to prevent a bankrupt from giving a guarantee?

Is there anything to prevent a bankrupt from giving a guarantee?Where an individual is an undischarged bankrupt (or a discharged bankrupt subject to a...

1st Aug

Q&As

Is a guarantee given over email valid?

Is a guarantee given over email valid?SummaryProvided that the other requirements for creating a contract are met, a guarantee can be validly created...

Produced in partnership with Albert Sampson 1st Aug

Q&As

Can a director, who personally settles a company’s debt as a result of a personal guarantee they provided, then reclaim from the company in administration the sums they paid under the guarantee for the amount the company owed to the creditor?

Can a director, who personally settles a company’s debt as a result of a personal guarantee they provided, then reclaim from the company in...

1st Aug

Q&As

Can the beneficiary of a guarantee claim amounts under a guarantee in addition to the amounts owed to it from the principal debtor which have been guaranteed?

Can the beneficiary of a guarantee claim amounts under a guarantee in addition to the amounts owed to it from the principal debtor which have been...

31st Jul

Q&As

I am acting for a lender who wants to make a demand under a guarantee—what considerations are there before making the demand?

I am acting for a lender who wants to make a demand under a guarantee—what considerations are there before making the demand?Contractual...

Produced in partnership with Ian Higgins of 3 Verulam Buildings (3VB) 31st Jul

Q&As

When can a guarantor voluntarily revoke its liability under a guarantee?

When can a guarantor voluntarily revoke its liability under a guarantee?Guarantees are a contractual arrangement where one party (the guarantor)...

Produced in partnership with Tom Stewart Coats of XXIV Old Buildings 31st Jul

Q&As

Would rights of set-off extend to monies held in a security account secured in favour of a third party lender? Presumably, contractual set-off could be stopped by giving notice of the charge over the account to the bank? However, would it be possible to prevent insolvency set-offs by giving notice of the charge to the bank?

Would rights of set-off extend to monies held in a security account secured in favour of a third party lender? Presumably, contractual set-off could...

31st Jul

Q&As

What is the banker’s right of set-off?

What is the banker’s right of set-off?The banker’s right of set-off refers to the right of a bank to combine two or more of a customer’s accounts held...

Produced in partnership with Richard Hanke of 3 Verulam Buildings (3VB) 31st Jul

Q&As

If a guarantor has granted a limited guarantee (capped at a specific figure) to a lender together with an unlimited indemnity, can the lender claim an amount under the unlimited indemnity in excess of the capped amount under the limited guarantee?

If a guarantor has granted a limited guarantee (capped at a specific figure) to a lender together with an unlimited indemnity, can the lender claim an...

31st Jul

Q&As

How will guarantees granted by a guarantor in favour of two different creditors rank in priority? Will either take priority over the other or will they rank equally?

How will guarantees granted by a guarantor in favour of two different creditors rank in priority? Will either take priority over the other or will...

31st Jul

Q&As

Can you pursue one of several guarantors without affecting the liability of the other guarantors?

Can you pursue one of several guarantors without affecting the liability of the other guarantors?This Q&A focuses on the rights of a beneficiary of a...

31st Jul

Q&As

Does The Lending Code apply to a guarantee provided by a company director?

Does The Lending Code apply to a guarantee provided by a company director?What is The Lending Code?The Lending Code is a voluntary code of practice,...

31st Jul

Q&As

Is an agreement to pay x if y fails to make payment a guarantee or does the word guarantee need to be used? Does it make any practical difference?

Is an agreement to pay x if y fails to make payment a guarantee or does the word guarantee need to be used? Does it make any practical difference?The...

Produced in partnership with Emma Horner of 4 Stone Buildings 31st Jul

Q&As

I am reviewing a loan which has a comfort letter supporting it. Does that mean the loan is guaranteed?

I am reviewing a loan which has a comfort letter supporting it. Does that mean the loan is guaranteed?In short, no, a comfort letter is not the same...

31st Jul

Q&As

How do I draft a guarantee that is limited in time or expires on a particular date?

How do I draft a guarantee that is limited in time or expires on a particular date?Is it possible to draft a guarantee limited in time and/or with a...

Produced in partnership with Richard Hanke of 3 Verulam Buildings (3VB) 31st Jul

Q&As

Should the ruling off provisions in a guarantee apply to the account of the principal debtor or the account of the guarantor?

Should the ruling off provisions in a guarantee apply to the account of the principal debtor or the account of the guarantor?Ruling off provisions and...

31st Jul

Q&As

What is the limitation time in respect of a guarantor’s obligations under a personal guarantee when the principal borrower has defaulted?

What is the limitation time in respect of a guarantor’s obligations under a personal guarantee when the principal borrower has defaulted?When a...

31st Jul

Q&As

What effect does a change of parties to a contract which has been guaranteed have on the guarantee?

What effect does a change of parties to a contract which has been guaranteed have on the guarantee?Where a party to a contract which has been...

31st Jul

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