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?

read titleRead full title
Published on LexisPSL on 31/03/2017

The following Banking & Finance Q&A provides comprehensive and up to date legal information covering:

  • 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?
  • Limited guarantees
  • Indemnities used in guarantee documentation
  • Construction

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?

We are not aware of any specific authority on this point.

Limited guarantees

In some transactions, the lender will agree that the guarantee is to be limited in some way which could include being limited by amount. For further information on limited guarantees, see Practice Note: Guarantees and Q&A: How do I draft a guarantee that is limited by amount?

Indemnities used in

Related documents:

Popular documents