The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:
Guarantee and indemnity
The Parent irrevocably and unconditionally:
guarantees to the Lender the performance of the [payment] Obligations of the Borrower on the dates on which they fall due under the Finance Documents;
undertakes with the Lender that whenever the Borrower does not pay any amount when due to the Lender under or in connection with the Finance Documents, the Parent shall immediately on demand by the Lender pay that amount to the Lender as if the Parent were the principal obligor;
as a separate and independent principal obligation, indemnifies the Lender, on a full indemnity basis, immediately on demand against any cost, loss or liability suffered by the Lender if any Obligation guaranteed by it is or becomes unenforceable, invalid or illegal and the amount payable by the Parent in respect of the cost, loss or liability shall be equal to the amount which the Lender would otherwise have been entitled to recover from the Borrower if the guaranteed Obligation had not been or becomes unenforceable, invalid or illegal; and
The Lender’s recourse to the Parent under this Clause
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