Enforcing guarantees—key issues
Enforcing guarantees—key issues

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Enforcing guarantees—key issues
  • What is the nature of claim that a lender has against a guarantor?
  • How to enforce a guarantee
  • Enforcing guarantees where there are multiple guarantors
  • Enforcing guarantees on a syndicated transaction
  • Enforcing guarantees from individuals

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This may have an impact on the information in this Practice Note about the Consumer Rights Act 2015. For more information, see Practice Note: Brexit—consumer protection—New consumer regulations.

This Practice Note considers the key issues in relation to the enforcement of guarantees in the context of a financing transaction where a lender (which is most likely to be a bank) has made a loan to a corporate borrower which is guaranteed by a corporate entity in the borrower’s group (eg the parent company of the borrower or a subsidiary of the borrower).

This Practice Note considers the following issues: