Guarantee froms by Gupta

V8_CH66

276 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
22. Stamp duty.?A contract or letter or guarantee, if unattested, is
chargeable to stamp duty as an agreement under Art. 5, Schedule I of the
Indian Stamp Act, 1899. But if the contract is in the form of a bond, duly
attested, and executed by way of security for the due execution of an office
or to account for money or other property received by virtue thereof or
executed by a surety to secure the due performance of a contract, it requires
stamp duty as a Security Bond under Article 57, Schedule I of the Indian
Stamp Act, 1872.
23. Registration.?A guarantee, when written, may be made either in
the form of a deed, or in the form of a bond, or in the form of a deed pool,
or by a letter addressed to the creditor, and requires to be attested.
A contract of guarantee does not require compulsory registration, unless
it creates an interest in immovable property of the value of Rs.  100 or more.
FORMS
1
Guarantee for Prompt Repayment of Loan to Lender
1.  The undersigned, in consideration of……………………….. (hereinafter
referred to as the  ?Lender?) having made a loan to…………………. (hereinafter
referred to as the  ?Borrower?) hereby unconditionally guarantees to the
Lender the prompt payment on all amounts now owing or which may
hereafter be owing to the Lender from the Borrower on account of such
loans, or any extension or renewal thereof, however and whenever made;
provided, however, that the obligation of the undersigned hereunder shall
not exceed the maximum amount of Rs……………..
2.  This undertaking shall operate as a continuing and absolute guarantee
and shall remain in full force and effect until the actual receipt by the Lender
of a revocation in writing signed by the undersigned, it being understood that
any such revocation shall be effective only as to additional new loans or
credits after the receipt thereof.
3. Notice of the acceptance of this guarantee and notice of transactions
entered into in reliance hereon are hereby waived.
4. The undersigned agrees that liability hereunder shall not be affected
by any extension of time or other forbearance or indulgence of favour granted
to Borrower, or by the release or modification of any security or the release
of any guarantor, whether or not notice thereof shall be given to the
undersigned, or by the neglect or failure of the Lender to take any action
with respect to any security, right, obligation, endorsement or guarantee
which it may at any time hold, or by any change by the Borrower in the former
manner of doing business, whether by incorporation, consolidation, merger,
partnership formation or change in membership, or otherwise.Ch. 66] GUARANTEE?FORMS 277
5. The Undersigned also waives all requirements of notice, demand,
presentment or protest in case of any default by Borrower and any right
which the undersigned might otherwise have required the Lender first to
proceed against the Borrower or against any co-guarantor or any other
person or first to realize on any security held by it before proceeding against
the Undersigned for the enforcement of this guarantee.
6. If there be more than one guarantor executing this guarantee, their
obligation hereunder shall be joint and several. In that case the word
?Undersigned?, shall be deemed to apply against each guarantor and the
Lender shall be entitled to full recovery of the obligation of this guarantee
against each, but shall retain only one satisfaction.
7. This instrument is intended to take effect as a sealed instrument and
the law of India shall determine the validity and construction thereof.
SIGNED AND DELIVERED on this…………………. day of……………, 20…..
In the presence of:
[Signature of Guarantor]
2
Guarantee
[Short Form]
FOR VALUE RECEIVED, the receipt and sufficiency of which being hereby
acknowledged, the undersigned does hereby guarantee payment of the
above note, together with all interest and costs of collection, without
limitation, and does further agree to remain fully bound until same are fully
paid to……………………………………….HOLDER.
Dated this…………………… day of………………………., 20…..
IN WITNESS WHEREOF I have hereunto set my hand and seal on the day
and year first abovewritten.
Guarantor
3
Guarantee against Performance of Obligation
under Promissory Note
[Short form]
In consideration of Rs……………. and other valuable consideration, I/We,
………………………………….. jointly and severally, guarantee the full and278 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
faithful performance of all obligations required under a certain promissory
note dated…………, 20….  by………………… in the principal amount of Rs…….
Dated:
WITNESS:
Guarantor/s
4
General Guarantee
1.  FOR GOOD AND VALUABLE CONSIDERATION, and as an inducement
for………………………………………….  The………………..  BANK has agreed to
extend credit to………………………. (the  ?borrower?) the undersigned (the
?Guarantor?) unconditionally guarantees to the Bank the prompt and full
payment of the following debt owed to the Bank from the borrower:
…………………………………………………………………………………………….
…………………………………………………………………………………………….
2. The undersigned agrees to remain bound on this guarantee notwith-
standing any extension, forbearance or waiver, or release, discharge or
substitution or any collateral or security for the debt. In the event of default
in payment of the debt the Bank may seek payment directly from the
undersigned without need to proceed first against the borrower.
3. This guarantee shall be binding upon and enure to the benefit of the
parties, their heirs, administrators, successors, assigns and personal
representatives.
Dated this………………………… day of……………………….., 20……
IN WITNESS WHEREOF I have hereunto set my hand and seal on the day
and year first above written.
Guarantor
WITNESSES :
1.
2.
5
Guarantee of pledges to secure debt
Sri……………………., son of Sri………………………… has been carrying on
a business under the trade name and style of……………… in the City
of…………….. and is desirous of increasing his existing facilities for obtaining
advance at the…………………… bank of………………….., and for that purpose
or proposes to pledge the property that may from time to time be in his
possession to the bank as security for discounts, loans and advances that
may be made to him by the bank in the course of the business.
Now in consideration of the premises, and of Rs……………… paid to the
said [Borrower], I promise and guarantee to the bank that all such pledgesCh. 66] GUARANTEE?FORMS 279
of property, warehouse receipts and other vouchers that may from time to
time be given by the said [Borrower] as collateral security to [Bank Name]
for advances, discounts and loans of moneys, and promise on my part that
the property so transferred and set over to the bank shall not be misapplied
or diverted to any other purpose while such loans or advances remain
unpaid to the bank, and if any default or misappropriation of the property
so pledged shall be made, I do promise and agree to indemnify and make
good to the bank any deficiency and fully satisfy the stipulation contained
in any such receipts or other vouchers for them, without requiring any notice
to me of the several loans and discounts that may be made by the bank to
the said [Borrower].
SIGNED AND DELIVERED BY THE GUARANTOR.
On this…………………… day of……………………, 20……  at……….
In the presence of :
1.
2.
[Signature of Guarnator]
6
Agreement of Guarantee to secure debts of company with
collateral undertakings by stockholders
THIS AGREEMENT made this………………  day of……………. 20….., Between
(1) Shri………………………., son of…………………… and Shri……………., son
of………………., both residents of………………………, hereinafter referred to as
the ?Guarantors? (which term or expression shall unless repugnant to the
context be deemed to include their respective heirs, successors, adminis-
trators, legal representatives and assigns, of the  FIRST PART AND
M/s.  A Company Ltd., having its registered office at……………….. and B and
C and D, all sons of…………………. and residing at…………………, collectively
referred to as the  ?Borrowers? (which term or expression shall unless
repugnant to the context be deemed to include their respective successors,
legal representatives and assigns) of the OTHER PART.
WHEREAS A company and B, C and D as stockholders of it, are engaged
in the business of conducting a flour mill and are erecting an artificial ice
and cold storage plant in…………, and expect to conduct a business of a flour
mill, the manufacturing and sale of artificial ice and a cold storage plant.
AND WHEREAS A has already invested in it about Rs……………, and it will
be required and become necessary to complete the artificial ice and cold
storage plant, to obtain a line of credit for about Rs…………, and A desires
to borrow that sum, or as much of it as may be necessary to complete……….
NOW THEREFORE, THIS AGREEMENT WITNESSES as follows:
1. The parties of the First Part agree to sign as security for A to such280 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
persons or banks as loans may or can be made from, for A, for sums not
to exceed Rs……………. in the aggregate, and continue as such security and
carry the loan for a period of not to exceed two years, upon the following
terms:
2. B, C and D are to satisfy Guarantors that they have already invested
Rs……….. in the business, and that the business is free from indebtedness.
3. A shall elect Guarantors as directors of A company Ltd. These two
with……………….. to constitute the board or directors of A, and place their
stock in A in the hands of a trustee to be voted by trustee for the re-election
of First Parties as directors of A Company for and until all the loans, upon
which first parties are security, are paid and satisfied in full.
4. First Parties are to be given a first lien upon all the property, both real
and personal, of A Company as security to indemnify them from any and
all liability incurred by them on account of their becoming security for A
Company.
5.  In the event of the property of A Company not being sufficient to pay
any and all of the indebtedness upon which First Parties have become liable
as security for it under this agreement, then D agrees to pay any liabilities
that the property of A Company is not sufficient to pay, and save and protect
Guarantors from any liability by reason of becoming security for A Company.
6.  B and C agree that they will give their services to the work of A
Company until any and all liabilities upon which First Parties have, or may
become security for A Company shall be paid in full, or Guarantors released
from them, and that they will not make a charge against A Company for the
work, or draw from them to exceed Rs………….. per week, each, for the
services until they and all loans upon which Guarantors are liable are paid
in full.
7. It is agreed that for and during the time first parties are liable as
securities for A Company upon any such obligations, they are to have control
of A Company and the services of B and C in it, and upon the payment of
the loans, and of release and discharge of first parties from any and all
liabilities, the First Parties agree to turn over to A Company and……………
all control of the property and all rights or interests that they may have in
it.
8. This Agreement shall be binding upon the heirs, executors.  Adminis-
trators liquidators and assigns of both the parties.
IN WITNESS WHEREOF the parties hereto have executed these presents
on the day and the year first above written.
SIGNED SEALED AND DELIVERED
BY THE PARTIES AT…………………..
In the presence of………………..
[Signatures of the parties]
WITNESSES:
1.
2.Ch. 66] GUARANTEE?FORMS 281
7
Agreement Depositing Shares and Bonds to be held as
collateral security for repayment of debts
FOR  VALUE RECEIVED  the undersigned hereby deposits with……………………
HOLDER as collateral security to secure the payment of the following debt:
………………………………………………………………………………………………..
………………………………………………………………………………………………..
The following shares of stock or bonds, described as:
COMPANY NAME…………………………………………………………………………….
OF SHARES CERTIFICATE NUMBER…………………………………………………..
It is understood and agreed that :
1. The holder may assign or transfer the said debt and the collateral
secured hereunder.
2. In the event there shall be a stock dividend or further issue of stock
in the Company to the undersigned, the undersigned shall deposit said
shares as additional collateral for the debt.
3. That while the collateral remains on deposit, the undersigned shall
have the full right to vote the shares and shall be entitled to all dividend
income.
4. That the undersigned shall not issue any other proxy or assignment
of rights in the deposited shares and bonds.
5.  The undersigned warrants and represents it has good title to the shares
or bonds being deposited as security, that they are free from other liens and
encumbrances, and that the undersigned has full authority to transfer the
said shares or bonds as collateral security.
6. In the event of default of payment of the debt, or breach of this deposit
agreement, the holder shall have full rights to foreclose on the deposited
shares or bonds and to exercise its rights as a secured party pursuant to
this or any other agreement between the parties or any statute, the said
rights being cumulative.
Dated this………………… day of………………….., 20……..
[Signature of Debtor]
8
Guarantee with collateral security for securing payment
and performance of obligations
[Short form]
Date :…………………..
Shri…………………………………………. (hereinafter called the  ?Debtor?) does282 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
hereby grant to Shri…………………………………………(hereinafter called the
?Secured Party?) a security interest in the following property (the ?collat-
eral?):
……………………………………………………………………………………………………
This security interest is granted to secure the payment and performance
of the following obligations owed to the secured party by the debtor:
……………………………………………………………………………………………………
The debtor hereby represents, covenants, warrants, agrees and ac-
knowledges to the secured party as follows:
1. The collateral shall include any and all after-acquired property of a like
nature and description, and all additions, appurtenances and proceeds
thereof.
2. The collateral shall be kept at the following address, and shall be fully
insured:
……………………………………………………………………………………………………
3. The Debtor owns the collateral, free and clear of any interest, lien or
encumbrance other than this security interest, and the Debtor has the full
right, title and authority to grant this security interest.
4. The Debtor agrees to execute such further security documents as are
reasonably required by the secured party.
5. Upon default in payment or the performance of any obligation in respect
of which this security interest is granted, or the breach of any provision of
this agreement the Secured Party or the holder may declare all obligations
to be immediately due and payable and shall have all remedies of the
Secured Party under any agreement or statute.
6. The holder may assign or transfer the said debt and the deposited
collateral hereunder.
Dated this………………………… day of………………………, 20…..
WITNESSES:
1.
2.
[Signature of Debtor]
9
Contract of Guarantee for providing
Telecommunication Services
THIS AGREEMENT is made on this………………..day of……….., 20…..
BETWEEN……………  Telephone Company having its  registered address
at………………, hereinafter referred to as  ?the Company? {which term or
expression shall unless excluded by or repugnant to the context be deemedCh. 66] GUARANTEE?FORMS 283
to include its successor, administrators, liquidators and assigns) of the ONE
PART AND SHRI……………………….., son of…………………., residing at…………
hereinafter referred to as ?the Guarantor? (which term or expression shall
unless excluded by or repugnant to the context be deemed to include his
heirs, successors, legal representatives and assigns) of the OTHER PART.
WHEREAS Shri……………………, son of…………………, residing at……………,
(hereinafter referred to as ?the Applicant?) intends to have telecommunica-
tion services for his  Telephone Booth to be run from the location at……………..
AND WHEREAS the……………… Telephone Company, as a condition to
furnishing the abovenamed Applicant, at the above stated service location,
telecommunications, has requested Applicant to establish credit by making
a cash deposit with the  Telephone Company to secure payment for
telecommunication or in lieu of a deposit at this time, to  furnish a satisfactory
guarantor for payment of charges for telecommunications;
AND WHEREAS, the undersigned Guarantor, in consideration of the
Telephone Company providing the Applicant to telecommunication ser-
vices, has agreed to act as Guarantor for the Applicant for the purpose
aforesaid.
NOW THEREFORE IT IS HEREBY AGREED AND DECLARED as follows :
1. The Guarantor, in oonsideration of the Telephone Company providing
the Applicant telecommunication services at the designated location of
Telephone Booth to be established by the Applicant without requiring a
deposit at this time, absolutely and unconditionally, Guarantees to the
Telephone Company the payment by applicant of all charges for telecom-
munications, for which Applicant may now be liable or for which Appltcant
may in the future become liable.
2. Guarantor covenants and agrees that, if Applicant at any time shall
be in default in the payment of the charges for telecommunications the
undersigned Guarantor will pay all outstanding charges at the Telephone
Company?s business office designated below.
3. In the event Guarantor defaults in making payment at the business
office of the Company, Guarantor agrees that the amount due from Applicant
may be transferred to any account Guarantor has with the  Telephone
Company.
4. Guarantor understands and agrees that Guarantor?s telephone service
is subject to suspension if all charges, including the charges due from
Applicant which have been transferred to Guarantor?s account, are not
promptly paid when due.
5. Guarantor waives notice of acceptance of the Guarantee, notice of
default and nonpayment by Applicant, demand and presentment to Guar-
antor for payment, protest and diligence in bringing suit against any party
to this Guarantee, and consents that time of payment may be extended by
the  Telephone Company without notice.  If suit be brought to enforce284 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
Guarantor?s obligation assumed in this Guarantee, Guarantor agrees to be
further liable and indebted for the court costs and reasonable attorney fees
incurred.
6. This contract of Guarantee shall remain in full force and effect until 30
days after receipt by the Telephone Company of Guarantor?s written notice
to terminate this contract delivered to the Telephone Company?s business
office design below; provided, however, that Guarantor?s liability under this
Guarantee shall remain in full force and effect after the termination of this
contract with respect to any and all charges for telecommunications incurred
by Applicant at any time prior to the effective date of the termination of this
contract.
7.  This contract of Guarantee shall apply to all telecommunications which
Applicant may from time to time be provided at the above listed service
location.
IN WTTNESS WHEREOF the parties hereto have executed these presents
on the day month and the year first above written.
SIGNED SEALED AND DELIVERED
BY THE PARTIES AT
In the presence of :
[Signature of parties]
WITNESSES :
1.
2.
10
Guarantee by Separate Instrument
THIS AGREEMENT is made on this…………….. day of………………, 20……,
BETWEEN The…………………..Bank,  incorporated and existing under and by
virtue of the laws of……………………. with its principal place of business
at……………, hereinafter referred to as  ?the Bank? (which term or expression
shall unless excluded by or repugnant to the context be deemed to include
its successors, administrators, and liquidators) of the  ONE PART AND
Shri…………………………, son of…………………., residing at…………, hereinaf-
ter referred to as ?the Guarantor? (which term or expression shall unless
excluded by or repugnant to the context be deemed to include his legal heirs
successors, administrators legal representatives and assigns) of the OTHER
PART.
WHEREAS The…………………. Bank, has this day made, executed and
delivered to the Bank of………………………….., incorporated and existing
under and by virtue of the laws of………………….., with its principal place of
business at……………….., its certain Promissory Note in the sum of Rs……….Ch. 66] GUARANTEE?FORMS 285
and the Note is secured by assignment, guarantees and collateral attached
to it;
AND WHEREAS  the collateral or part of it is of doubtful value; and the
undersigned desires the further securing of the Bank of………………….. and
of guaranteeing the full payment of the Promissory Note.
NOW THEREFORE THESE PRESENTS WITNESSES as follows :
1. In consideration of the consolidation of the Banking Corporations and
the mutual personal benefit and advantages coming to the undersigned by
reason of it, and for other good, valuable and adequate consideration, the
undersigned, guarantee to the ………………… Bank and to its successors
and assigns that the Promissory Note shall upon demand be paid in full,
and the undersigned acknowledges to be obligated to pay the full face value
of the paper, together with interest at the due date.
2. It is understood, however, that the proceeds of any and all collateral
attached to the paper shall be applied to the paper as of the date it is received
and that the undersigned shall immediately after that be credited upon this
guarantee to that extent.
3. It is agreed that this guarantee shall apply to all extensions and
renewals of the Promissory Note, and the undersigned by this means
consents that the collateral or security attached to the Promissory Note may
be extended and renewed from time to time without further notice to or
further assent from or demand upon the undersigned. Presentment protest
and demand and notice of every kind is by this means expressly waived.
4. This guarantee shall be binding upon the heirs, executors, adminis-
trators, legatees and devisees of the undersigned.
IN WITNESS WHEREOF the parties hereto have executed these presents
on the day month and the year first above written.
SIGNED SEALED AND DELIVERED
BY THE PARTIES AT……………..
In the presence of:
WITNESSES :
1.
2.
[Signature and seal of the parties]
11
Unlimited Guarantee Respecting Credit
1. FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency
of which being hereby acknowledged, and as a condition of……………………
(the  ?Company?), extending credit to………………. (the  ?Borrower?), the286 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
undersigned unconditionally guarantees to Company the prompt and full
payment of all sums now owing or which may become hereinafter due to
Company from the Borrower.
2. The undersigned agrees to remain fully bound in respect of this
guarantee notwithstanding any extension, forbearance, waiver, release,
discharge or substitution of the debt or any collateral, guarantee or security
for the debt. In the event of default, the Company may seek payment directly
from the undersigned without being required to proceed first against the
Borrower.
3. This guarantee shall be binding upon and inure to the benefit of the
parties, their successors, assigns and personal representatives.
Dated this………………. day of………………., 20…….
IN WITNESS WHEREOF the Borrower and the Guarantor have hereunto set
their hands and seals on the day and year first above written.
Borrower          Guarantor
In the presence of :
WITNESSES :
1.
2.
12
Unlimited Guarantee as to the Amount and Duration
1. FOR GOOD CONSIDERATION, and as an inducement for??????.
(Creditor), to extend credit to?????. (Customer), it is hereby agreed
that the undersigned does hereby guarantee to Creditor the prompt,
punctual and full payment of all monies now or hereinafter due Creditor from
Customer.
2.  Until termination, this guarantee is unlimited as to amount or duration
and shall remain in full force and effect notwithstanding any extension,
compromise, adjustment, forbearance, waiver, release or discharge of any
party obligor or guarantor, or release in whole or in part of any security
granted for said indebtedness or compromise or adjustment thereto, and
the undersigned waives all notices thereto.
3.  The obligations of the undersigned shall be at the election of Creditor,
shall be primary and not necessarily secondary, and Creditor shall not be
required to exhaust its remedies as against Customer prior to enforcing its
rights under this guarantee against the undersigned.
4.  The guarantee hereunder shall be unconditional and absolute and the
undersigned waive all rights of subrogation and set-off until all sums under
this guarantee are fully paid. The undersigned further waives all suretyship
defenses or defenses in the nature thereof, generally.Ch. 66] GUARANTEE?FORMS 287
5. In the event payments due under this guarantee are not punctually paid
upon demand, then the undersigned shall pay all reasonable costs and
attorney?s fees necessary for collection, and enforcement of this guarantee.
6. If there are two or more guarantors to this guarantee, the obligations
shall be joint and several and binding upon and inure to the benefit of the
parties, their successors, assigns and personal representatives.
7.  The guarantee may be terminated by any guarantor upon fifteen (15)
days written notice of termination, mailed certified mail, return receipt
requested to the Creditor. Such termination shall extend only to credit
extended beyond said fifteen (15) days period and not to prior extended
credit, or goods in transit received by Customer beyond said date or for
special orders placed prior to said date notwithstanding date of delivery.
Termination of this guarantee by any guarantor shall not impair the
continuing guarantee of any remaining guarantors of said termination.
8.  Each of the undersigned warrants and represents it has full authority
to enter into this guarantee.
9.  This guarantee shall be binding upon and inure to the benefit of the
parties, their successors, assigns and personal representatives.
This guarantee shall be construed and enforced under the laws of India.
Signed this????. day of?????., 20??
In the presence of:
Witness : Guarantor
Witness : Guarantor
13
Continuing Guarantee for a fixed sum until
repayment of debt
1.  The undersigned, in consideration of???????..  (hereinafter
referred to as the ?Lender?) having made a loan to??????.. (herein-
after referred to as the  ?Borrower?) hereby unconditionally guarantees to the
Lender the prompt payment on all amounts now owing or which may
hereafter be owing to the Lender from the Borrower on account of such
loans, or any extension or renewal thereof, however and whenever made;
provided, however, that the obligation of the undersigned hereunder shall
not exceed the maximum amount of Rs?????..
2.  This undertaking shall operate as a continuing and absolute guaran-
tee and shall remain in full force and effect until the actual receipt by the
Lender of a revocation in writing signed by the undersigned, it being
understood that any such revocation shall be effective only as to additional
new loans or credits after the receipt thereof.288 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
3.  Notice of the acceptance of this guarantee and notice of transactions
entered into in reliance hereon are hereby waived.
4.  The Undersigned agrees that liability hereunder shall not be affected
by any extension of time or other forbearance or indulgence of favour granted
to Borrower, or by the release or modification of any security or the release
of any guarantor, whether or not notice thereof shall be given to the
undersigned, or by the neglect or failure of the Lender to take any action
with respect to any security, right, obligation, endorsement or guarantee
which it may at any time hold, or by any change by the Borrower in the former
manner of doing business, whether by incorporation, consolidation, merger,
partnership formation or change in membership, or otherwise.
5.  The Undersigned also waives all requirements of notice, demand,
presentment or protest in case of any default by Borrower and any right
which the undersigned might otherwise have required the Lender first to
proceed against the Borrower or against any co-guarantor or any other
person or first to realize on any security held by it before proceeding against
the Undersigned for the enforcement of this guarantee.
6.  If there be more than one guarantor executing this guarantee, their
obligation hereunder shall be joint and several. In that case the word
?Undersigned?, shall be deemed to apply against each guarantor and the
Lender shall be entitled to full recovery of the obligation of this guarantee
against each, but shall retain only one satisfaction.
7. This instrument is intended to take effect as a sealed instrument and
the law of India shall determine the validity and construction thereof.
SIGNED AND DELIVERED on this?????? day of?????., 20?..
In the presence of:
WITNESSES :
1.
2.
[Signature of the Guarantor]
14
Agreement subordinating Financial Claims of
Creditor to other claims
FOR VALUE RECEIVED the undersigned hereby subordinates all of its
claims, whether secured or unsecured, against the following:
to a claim owed to:
????????????????…………………………………………………..
in an amount not to exceed Rs???., and regardless of whether the said
claim is secured or unsecured.Ch. 66] GUARANTEE?FORMS 289
Signed this??????. day of???????????, 20?.
Acknowledgement by debtor      [Signature of Creditor]
15
Subordination Agreement between Secured Creditor and
Debtor in respect of claim against collateral securities
FOR VALUE RECEIVED the undersigned, having or acquiring a security
interest in the following collateral:
??????????????………………………………………………………….
of the following debtor:
??????????????………………………………………………………….
hereby agrees that the said security interest shall be subordinated to the
security interest in respect of the following collateral:
………??????????????????????????????..
Dated the???????? day of??????????. 20?…
IN WITNESS WHEREOF the said company has hereto affixed its Company
Seal, attested by the hands of its duly authorized officers, on the day and
year first above written.
Company Name :
Acknowledged by Debtor :
16
Demand on Guarantor
Date :
To :
Re :
Please be advised that the undersigned is the Holder of your guarantee
dated?? 20??.. wherein you guaranteed the debt owed us by???. As
evidenced by a certain promissory note dated???? 20??
You are hereby advised that payments on said debt are in default.
To date the outstanding principal balance and accrued interest is
Rs????
Therefore, demand is hereby made upon you to honor said guarantee
which requires that you pay the sum of?????., forthwith.
Very truly yours,
G : CDD (Vol. 8) ? 19290 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
17
Demand for repayment of advances
1. Parties.?The parties to this Agreement are????? Products
Company [Products and?????.., Inc. (?KMJ?)].
2.  Purpose.?KMJ has reached an agreement in principle with????..
Corporation (?LNS?) pursuant to which KMJ or some person or entity
designated by KMJ (a ?Manager?) will manage certain aspects of LNS?s
business for up to 36 months, during which time KMJ may elect to purchase
(or, in certain circumstances, may be required to purchase) all of the
common stock of LNS. By a Continuing Unconditional Guarantee
dated??????.. (the  ?Guarantee Agreement?), Products agreed to
guarantee payment of certain indebtedness incurred by LNS in connection
with a????? [date]  ?Loan Agreement? between LNS and??????..
Bank of??????, N.A. (?Bank?); specifically, Products agreed to guar-
antee payment of advances made by Bank to LNS in connection with a
Rs????? line of credit made available to LNS in order to provide
working capital support for LNS?s (or its subsidiaries) ongoing operations.
As of the date of this Agreement, LNS has obtained advances under the
Loan Agreement totaling Rs???, KMJ anticipates that it or an agent
acting on its behalf will find it desirable to cause LNS to obtain further
advances (?Future Advances?) under the Loan Agreement in order to fund
working capital shortfalls and other financial obligations of LNS or its
subsidiaries while under KMJ?s or its agent?s management. Accordingly,
KMJ has asked that Products continue to guarantee Future Advances by
Bank to LNS and, pursuant to the terms and subject to the conditions set
forth below.  Products is willing to do so.
3.  Indemnity.?If KMJ fails to purchase all of LNS?s common stock within
approximately 36 months of the effective date of the first definitive agree-
ment between KMJ and LNS describing the principal terms pursuant to
which such a transaction might be accomplished, or if Bank at any time
demands payment pursuant to the Guarantee Agreement of LNS?s indebt-
edness to Bank, KMJ will indemnify Products, on demand by Products,
against such a demand by Bank to the extent of the aggregate amount of
the Future Advances together with any accrued but unpaid interest. The
terms of this paragraph 3 shall survive termination or expiration of this
Agreement.
4.  Other  Terms.?(a)  KMJ shall not request any advance under the Loan
Agreement for the benefit of LNS or its subsidiaries unless such request is
made to Bank in writing signed by a designated representative of LNS or
KMJ or the Manager, and by a designated representative of Products.  For
purposes of this sub-paragraph (a), Products designates?????.. to be
its representative. Products may decline to join in a request if, in Products?Ch. 66] GUARANTEE?FORMS 291
judgment, either LNS or KMJ has suffered a material, adverse change in
financial condition since the date of this Agreement; in such a case no
advance will be requested.
(b) KMJ shall manage (or shall cause the Manager to manage) the
business of LNS in accordance with the terms of the……………….[date]
?Management Agreement? between LNS and KMJ.
(c) This Agreement shall not affect or modify the terms of any agreement
between Products and LNS or its subsidiaries, except that while this
Agreement is in effect, Products will waive the requirements of sec-
tion????? of the???.. [date] Agreement among Products, LNS, and
LNS?s subsidiaries.  KMJ will cause (or direct the Manager to cause) LNS
and its subsidiaries to satisfy their undertakings to Products in connection
with that Agreement.
5. Financial Representation.?KMJ represents and warrants to Prod-
ucts that there has been no material, adverse change in KMJ?s financial
condition since???.. [date].
6. Expiration.?This Agreement shall expire upon KMJ?s acquisition of
all of LNS? common stock or upon the expiration or termination of any
agreement pursuant to which KMJ or a Manager may manage LNS?
business.
7. Effective Date.?This Agreement shall be effective as of????..
[date].
By??????…. By???….???
Title?????…. Title????…..?
18
Notice of Revocation of Guarantee
Date :
To :
Re : A certain guarantee provided to you by the undersigned guar-
anteeing the credit of
Please take notice that effective upon receipt by you of this notice of
revocation, the undersigned shall not be obligated on the guarantee for any
future or further credit extended by you to the above named.
Yours very truly,
19
Letter of Guarantee in favour of a Bank by a surety securing
repayment of liabilities of a borrower
The . . . . . . . .  . .  . .  . . . . . . . . . . . . . . . . . (herein called ?the Bank?) having292 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
at my request agreed in its discretion to make up or continue advances or
otherwise to grant accommodation by way of cash Credit /Loan/Overdraft
or otherwise to . . . . . . . . . . . . . (herein called ?the Borrower?) under a drawing
limit Rs. . . . . . . . . . . at an interest of . . . . . . . . per cent per annum to be
calculated on the balance of the Borrower?s accounts and charged in
accordance with the practice of the Bank with rests on the security hereof
it is agreed as follows:
1. That I guarantee to the Bank the due payment and discharge on
demand of all present and future advances by the Bank to the Borrower and
all present and future indebtedness and liabilities of the Borrower to the Bank
from time to time in any manner together with all relative, charges, costs
and expenses as between attorney and client provided that the total amount
recoverable under this guarantee shall not exceed Rs.  . . . . .  . . . . and the
interest, charges, costs and expenses aforesaid with interest on the
aggregate amount at the rate of . . . .  per cent per annum from the date of
demand until payment.
2. That this guarantee shall be continuing security binding me and my
personal representatives for the payment and discharge of the Borrower?s
all present and future indebtedness and liabilities to the Bank of any kind
in any manner whether solely or jointly primary or collateral accrued or
accruing subject to the aforesaid limit of total amount together with all
relative interest, charges and costs as between attorney and client ex-
penses.
3. That this guarantee shall not be discharged by any partial payments
or any fluctuation or settlement of accounts or the existence of credit balance
on the Borrower?s said account at any time but shall cease only on payment
by me of the full amount under this guarantee.
4. That you may without reference or notice to me grant time or other
indulgence to or accept or make any composition or arrangement with the
borrower in respect of any indebtedness or liability hereby guaranteed and
deal with any securities, obligation or decrees now or hereafter held by you
in respect thereof and treat me as though I were primarily and severally liable
with the Borrower and I waive all suretyship or other rights at any time
inconsistent with any of the terms of this guarantee.
5. That any partial payments received by you from any source in respect
of any indebtedness of liability hereby guaranteed may be treated as
payments in gross and you may marshall apply and appropriate all securities
or funds you may at any time have in respect of such indebtedness or liability
as you may think fit and any accounts settled or stated between you and
the Borrower.
6. That all principal interest and other moneys now or hereafter payable
to me under the Bank?s Fixed Deposit Receipt No.  . . . . .  MIC/Cash CertificateCh. 66] GUARANTEE?FORMS 293
dated . . . . . . . . for Rs.  . . . . . . . . . . . . in my name and hereby hypothecated
to the Bank and its assigns by way of first charge as a continuing security
for all indebtedness and liabilities of the Borrower covered by this guarantee
and for the due performance of my obligations hereunder.
7. That on any default of the Borrower in payment of any money hereby
secured or the performance of any obligation to the Bank under this or any
other security or the occurrence of any circumstances in the opinion of the
Bank endangering this or any other security the Bank shall be entitled at
my risk and expenses as attorney for me and in my name or otherwise to
deal in any manner with any debts or claims under this security without being
bound to exercise any such powers or liable for any loss in the exercise
thereof I undertaking to transfer and deliver to the Bank all relative
documents and papers and agreeing to accept the Bank?s accounts or
receipts from realisations under this security and to any shortfall or
deficiency thereby shown and undertaking also that I shall not create or
suffer any mortgage charge lieu or encumbrance to effect the same or any
part thereof nor do or allow anything that may prejudice the security.
8. That without prejudice to any of your rights you may in your absolute
and uncontrolled discretion and time without reference to my consent
discharge the said Fixed Deposit Receipt before the date of maturity thereof
and appropriate the Deposit money and the interest thereon up to the date
of such discharge in pro tanto satisfaction of all indebtedness and liabilities
of the Borrower for the time being together with all interest costs charges
and expenses as aforesaid covered by this guarantee and to transfer the
excess balance after such appropriation, if any to my current account with
the Bank, or to remit the same to my address known to the Bank.
9. That I will execute all documents and do all things which the Bank may
from time to time require to give effect hereto.
10. That nothing herein shall prejudice the Bank?s rights or remedies in
respect of any present or future security guarantee obligation or decree for
any indebtedness or liability of the Borrower to the Bank.
11. That it is declared that all present debts and assets aforesaid are my
absolute property at my sole disposal and free from any prior charge or
encumbrance and that all future debts and assets hereunder shall be
likewise my unencumbered disposal property.
Dated at . . . . . . this . . . . day of . . . . 20 . . . .
Signature of the Guarantor/Guarantors294 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
20
Letter of Guarantee furnished by a surety under a hire-
purchase agreement
Full name of guarantor . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . .
Occupation . . . . . . . . . . . . . . . . . . . . Householder or tenant . . . . . . . . . .
Age . . . . . . . . . . . . . . Name and address of bankers (if any) . . . . .
To : . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . .
In consideration of your entering into a hire-purchase agreement with the
undermentioned hire relating to the goods set out below and more
particularly described in the hire-purchase agreement I hereby guarantee
the payment by the hirer of all sums due under the hire purchase agreement
and the due performance by the hirer of all his obligations thereunder.
I further agree and declare that my liability under this guarantee shall be
computed upon the footing that the hire-purchase agreement is fully binding
on and enforceable against the hirer and that my said liability shall not in
any way be discharged, diminished or affected by the invalidity or
unenforceability of the hire-purchase agreement or by:
(a) the granting of time or indulgence to the hirer;
(b) the effecting of any release of or compromise with the hirer or
agreement not to sue the hirer;
(c) the impairment of any securities taken from the hirer or the failure
to realise or enforce your rights under such securities;
(d) the variation of any term or terms of the hire-purchase agreement
or the substitution of any new goods for goods comprised in the
said agreement which are damaged lost stolen or destroyed;
but so that I shall not be liable by reason of such variation or substitution
for payment of any sum greater than the total amount for which I would have
been liable if such variation or substitution had not been made.
Name of hirer . . . . . . . . . . . . . . . . . . . .
Address of hirer . . . . . . . . . . . . . . . . . .
Description of goods . . . . . . . . . . . . . .
Registration or serial number . . . . . . .
Signature of guarantor . . . . . . . . . . . . .
Witness to guarantor?s signature :
Name of witnes . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . .
Occupation . . . . . . . . . . . . . . . . . . . . . .
Signature of witness . . . . . . . . . . . . . . .Ch. 66] GUARANTEE?FORMS 295
21
Guarantee in respect of payment of dividends
To [shareholder] of [address]
In consideration of your having at my request applied for and having been
allotted . . . . . . . . . . [preference] shares Nos.  . . . . . . to . . .  . . (both inclusive)
in . . . . . . . . . . . . . Ltd. and having paid the full nominal amount thereof in
cash I [guarantor] undertake that in the event of the said company paying
in any one year no dividend thereon or a dividend at a rate less than [6] per
cent per annum I will within [twenty-one] days after the annual general
meeting of the said company pay you such dividend or so much thereof as
the said company shall not pay.  This guarantee is to continue in force for
[five] years and no longer and in the event of the said company being wound
up or going into liquidation within [five] years from the date hereof I undertake
to pay to you during the remainder of the said period of [five] years a sum
equal to [6] per cent per annum upon the nominal amount of  the said shares
less any sums you may have received in such winding up or liquidation in
respect of dividends on such shares such payment to be made by me on
the . . . . . .  day of . . . .  in each year.
AS WITNESS etc.
[Signature of guarantor]
Dated the . . . . . . . day of . . . . .
22
Guarantee in respect of payment of arrear rents
To [landlord] of [address, etc.]
In considerations of your having at my request agreed not to enforce by
distress or otherwise the payment of Rs.  . . . . . . . . . . . . being arrears of rent
now due and owing to you from [tenant] of [address, etc.] under a lease dated
the . . . . . . . . . . . day of . . . . . . . . . . . . . . whereby you demised to him for
the term and at the rent therein mentioned a dwelling-house and premises
with the appurtenances therein particularly described and situate at
[address].
I hereby guarantee to you the payment of the said arrears of rent on or
before the . . . . . . day of . . . . .
Dated the . . . . . . day of . . . . . .
[Signature of surety]296 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
23
Letter of Guarantee creating charge upon the securities
deposited to secure the advances
To [lenders] of [address, etc.]
In consideration of your advancing to [principal debtor] of [address, etc.]
at my request the sum of Rs.  . . . . . . . . as a loan for the period of . . . . . years
from the date hereof.
I the undersigned hereby agree with you as follows:
1. To make good any default on the part of the said [principal debtor] or
his estate in the payment of the said loan and of all interest due thereon.
2. To deposit forthwith in your hands the securities mentioned in the
schedule hereto as collateral security for the said loan until the repayment
or satisfaction thereof with interest at the rate of . . . . . . . . per cent per annum.
3. The said securities are hereby charged by me with the payment of the
said loan and interest and shall not be sold or encumbered by me in any
way without your consent in writing first obtained so long as anything shall
remain due to you in respect of the said loan or from me hereunder.
4. I will whenever required by you so to do execute at my won expense
a proper transfer or proper transfers to you of such of the said securities
as are capable of being transferred together with power of sale and all other
necessary powers for securing and enforcing the repayment of the said loan
and interest.
5. The giving of time to the said [principal debtor] or the neglect or
forbearance by you in requiring or enforcing payment of the said loan and
interest or other indulgence shall not in any prejudice or affect my liability
under this guarantee.
6. No changes whatsoever in the constitution of your firm shall impair or
discharge my liability hereunder notwithstanding any provision to that effect
in the Partnership Act, 1932 or any other enactment.
Dated this . . . . . . day of . . . . .
SCHEDULE
[List of securities deposited]
[Signature of surety]
24
Letter of Guarantee by surety in favour of the seller to
secure buyer?s obligation under a credit sale agreement
To (Seller)
In consideration of your agreeing to deliver to (buyer) of (address, etc.)Ch. 66] GUARANTEE?FORMS 297
(hereinafter called ?the Buyer?) under the terms of a credit sale agreement
proposed to be made between yourselves and the buyer the goods specified
in the schedule to the said credit sale agreement and by way of identification
described in the schedule hereto I hereby guarantee, upon written demand
being made to me by you the payment by the buyer of all sums due under
the said agreement and the due performance of all the buyer?s obligations
thereunder and I further agree and declare that my liability under this
guarantee shall be computed upon the footing that the credit sale agreement
is fully binding on and enforceable against the buyer and that my said liability
shall not in any way be discharged diminished or affected the invalidity or
unenforceability of the credit sale agreement or by
(1) the granting of time or indulgence to the buyer;
(2) the effecting of any release of or compromise with the buyer or
agreement not to sue the buyer;
(3) the impairment of any securities taken from the buyer or the failure
to realise or enforce your rights under such securities;
(4) the variation of any term or terms of the credit sale agreement or
the substitution of any new goods for goods comprised in the said
agreement which are damaged lost stolen or destroyed but so that
I shall not be liable by reason of such variation or substitution for
payment of any sum greater than the total amount for which I would
have been liable if such variation or substitution had not been made.
Any demand made by you hereunder shall be validly made if served on
me personally or sent to me by prepaid post to or left at my address, stated
below or to or at my current or last known business or private address and
if sent by post shall be conclusively deemed to have been received by me
within . . . . .  hours after the time of posting.
SCHEDULE
(Description of the goods, which should correspond with the description
given in the credit sale agreement)
Full name of guarantor . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signature of guarantor . . . . . . . . . . . . . . . .
Full name of witness . . . . . . . . . . . . . . . . .
Address . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupation . . . .  . . . . . . . . . . . . . . . . . . . . .
Signature of witness . . . . . . . . . . . . . . . . . .298 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
25
Guarantee by the second mortgagee on behalf of the
Mortgagor in consideration of the first mortgagee
not exercising his power of sale
THIS AGREEMENT is made the . . . . . . day of . . . . . BETWEEN [second
mortgagee] of [address, etc.] (hereinafter called the second mortgagee
which expression shall where the context so admits include his personal
representatives) of the one part and [first mortgagee] of [address, etc.]
(hereinafter called the first mortgagee which expression shall where the
context so admits include his successors-in-title and personal representa-
tives) of the other part.
WHEREAS
(1) This agreement is intended to be supplemental to
(a) a mortgage (hereinafter called the first mortgage) dated the . . . .
day of . . . .  and made between [mortgagor] of the one part and
the first mortgagee of the other part being a mortgage of the
property known as . . . . . . to secure the repayment of Rs.  . . . . with
interest thereon at the rate of . . . . per cent per annum to the first
mortgagee and
(b) a mortgage (hereinafter called the second mortgage) dated
the . . . . . . . day of . . . . and made between the said [mortgagor]
of the one part and the second mortgagee of the other part being
a second mortgage of the said property to secure the repayment
of Rs.  . . . . with interest thereon at the rate of . . . . per cent per annum
to the second mortgage.
(2) The first mortgagee has become entitled to exercise the statutory
power of sale conferred by the first mortgagee and the second mortgagee
has requested the first mortgagee not to exercise such power and after
certain negotiations the parties hereto have come to the agreement
hereinafter expressed.
NOW IT IS HEREBY AGREED as follows :
1. If and whenever any interest payable under the first mortgage is in
arrear and unpaid for the space of [twenty-one] days after the same shall
become payable the second mortgagee will upon the request of the first
mortgagee pay the same to the first mortgagee.
2. If and whenever there shall be any breach on the part of the said
[mortgagor] of any covenant on his part contained in the first mortgage other
than the covenants to pay the principal monies and interest thereby secured
the second mortgagee will upon the request of the first mortgagee cause
such breach to be remedied within a reasonable time.
3. If and so long as no interest under the first mortgage is in arrear andCh. 66] GUARANTEE?FORMS 299
unpaid for the space of [two] months the first mortgagee will not (without
the consent in writing of the second mortgagee) exercise his power of sale
during the period of [five] years from the date hereof nor will he require the
payment of the principal monies secured by the first mortgagee or any part
thereof.
4. If at any time after the period of [five] years from the date hereof default
shall be made in payment of the principal monies secured by the first
mortgage for a space of [six months] the second mortgagee will within [two]
months after demand in writing by the first mortgagee pay such principal
monies to the first mortgagee.
5. The giving of time to the said [mortgagor] or the neglect or forbearance
of the first mortgagee in requiring on enforcing payment of the principal
money and interest secured by the first mortgagee or any other variation
of the provisions of the first mortgage or other dealing between the first
mortgagee and the said [mortgagor] shall not in any way prejudice or affect
the liability of the second mortgagee hereunder or the agreement on the part
of the second mortgagee herein contained and although as between the
said [mortgagor] and the second mortgagee the second mortgagee is only
a surety for the said [mortgagor] yet as between the second mortgagee and
he first mortgagee the second mortgagee is to be considered a principal
debtor.
AS WITNESS etc.
[Signatures of both parties]
26
Guarantee for supply of goods on credit to a third party,
limited to single transaction
To [suppliers] of [address]
I [surety] of [address, etc.] hereby agree to be answerable to you for the
price of [amount and description of goods to be supplied] to be delivered
to [principal debtor] of [address, etc.] payable in one month from the date
of delivery.
This guarantee is not a continuing guarantee but my liability shall not be
terminated or affected by my death or by any change in the constitution of
your firm or by your giving time or other indulgence to the said [principal
debtor].
Dated this . . . . . day of . . . . .
[Signature of surety]300 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
27
Simple Guarantee for supply of goods on credit to a
third party with appropriation of payments
To [suppliers] of [address]
In consideration of your agreeing to supply [principal debtor] of [address,
etc.] with goods in the way of his trade and business as a [description of
business] up to but not exceeding the sum of Rs.  . . . . . . I hereby guarantee
to you the payment of the said sum.
This guarantee is not a continuing security and shall not extend or apply
to any goods that shall be supplied by you whether at one time or otherwise
to the said [principal debtor] in excess of the said sum of Rs.  . . . . . . and
all payments made by the said [principal debtor] to you after the date hereof
on account of goods supplied to him by you as aforesaid shall be
appropriated by you in reduction of my liability under this guarantee until
the said sum of Rs.  . . . . . shall have been wholly paid or satisfied by the
said [principal debtor] and my liability hereunder shall have been thereby
or in some other way discharged.
Dated this . . . . . day of . . . .
[Signature of surety]
28
Guarantee given by bank upon reduction of Share Capital by
a Company, for payment of debt or claim
THIS AGREEMENT is made .  . . . .  day of . . . . BETWEEN [bank] having its
registered office at [address] (hereinafter called the bank) of the one part
and [company] having its registered office at [address] (hereinafter called
the company) of the other part.
WHEREAS :
(1) The company has presented a Petition to the Company Law Board
at . . . . . for the confirmation of a reduction of the company?s share capital
as set out in the resolutions passed on the . . . . . . day of . . . . . . and scheduled
hereto.
(2) With a view to obtaining a direction of the Company court pursuant
to the Companies Act, 1956 which provides that every creditor who at the
date fixed by the court is entitled to any debt or claim which if that date were
the commencement of the winding up the company would be admissible in
proof against the company shall be entitled to object to the reduction of
capital shall not apply as regards the creditors of the company at the dateCh. 66] GUARANTEE?FORMS 301
hereof the bank has agreed at the request of the company to give such
guarantee in respect of the company?s liabilities as is hereinafter contained.
NOW IT IS HEREBY AGREED as follows :
1.  In consideration of the payment to the bank by the company of the
sum of Rs.  . . . . . . . . . . . . . . . . . . (the receipt thereof the bank hereby
acknowledges) the bank hereby undertakes that if the company shall fail
to pay or satisfy any debt or claim outstanding at the date hereof which if
the date hereof were the commencement of the winding up of the company
would be admissible in proof against the company the bank will pay or satisfy
such debt or claim.
2. In pursuant to the provisions of the preceding clause hereof the bank
shall pay or satisfy any debt or claim of the company the resulting debt or
claim of the bank against the company shall be postponed to every other
debt or claim against the company of the nature mentioned in clause I hereof
and accordingly the bank shall not be entitled to any right of proof on a
winding up of the company in respect of any debt or claim paid or satisfied
by the bank under this agreement until all other debts or claims as aforesaid
have been fully paid or satisfied.
3. The provisions of the two preceding clauses hereof shall ensure for
the benefit of every person who is a creditor of the company in respect of
any such debt or claim as is  mentioned in clause I hereof and shall be
enforceable against the bank by any such creditor as aforesaid.
4. The bank as a creditor or contingent creditor of the company hereby
consents to the reduction of the company?s share capital referred to in the
said petition.
5. The liability of the bank hereunder shall  be limited to the sum of
Rs. . . . . .
SCHEDULE
Resolutions of the company
1. That the capital of the company be reduced from Rs. 6,00,000 divided
into 60,000 ordinary shares of Rs.  10 each (all of which have been issued
and are fully paid up), to Rs.  3,00,000 divided into 60,000 ordinary shares
of Rs.  5 each and that such reduction be effected by returning to the holders
of the said shares paid up capital to the extent of Rs.  8 per share, and by
reducing the nominal amount of each of the said shares from Rs. 10 to Rs.
5.
2. That forthwith and contingently upon such resolution of capital taking
effect:
(a) the 60,000 fully paid ordinary shares of Rs.  5 each resulting
therefrom be consolidated in such manner that every [ten] of the
said shares shall constitute one fully paid ordinary share of Rs. 10;302 CONVEYANCING, DRAFTING & DEEDS [Ch. 66
(b) the capital of the company be increased to its former amount of
Rs…………… by the creation of 30,000 ordinary shares of Rs.  10
each;
(c) the sum of Rs.  24,000 being part of the amount standing to the credit
of the general reserve of the company be capitalised and accord-
ingly that such sum be set free for distribution amongst the
members of the company who would have been entitled thereto if
distributed by way of dividend and in the same proportions on
condition that the same be not paid in cash but be applied in paying
up in full Rs. 24,000 of the unissued ordinary shares of Rs.  10 each
in the capital of the company to be allotted and distributed credited
as fully paid up to and amongst such members in the proportions
aforesaid.
AS WITNESS etc.
[Signatures on behalf of the bank and the company]
29
Guarantee by a surety on behalf of tenant for payment
of rent and observance of terms of tenancy
agreement by the tenant
To [landlord] of [address, etc.]
In consideration of your having agreed at my request to accept [tenant]
(hereinafter called the tenant) as the tenant of your house [address] upon
the terms of an agreement dated the . . . . . day of . . . . at the rent of Rs.
. . . . . . per annum payable by quarterly payments on the usual quarter days
I guarantee the payment by the tenant to you of the said rent and the
performance and observance by him of the terms of the said tenancy
agreement upon the following conditions:
1. If the tenant shall make default in the payment of the rent for the space
of one month I will upon a written request by you pay you the quarter?s rent
which shall be so in arrear.
2. If the tenant shall make default in the performance or observance of
any of the provisions on his part contained in the said tenancy agreement
I will pay to you all losses damages expenses and costs which you shall
be entitled to recover by reason of such default to the extent to which you
shall be unable to recover them from the tenant.
3. This guarantee shall continue only for the space of . . . . . . . years from
the date hereof and extend to the acts and defaults of the tenant during that
period but during that period it shall not revocable or discharged by my death
or by the death or bankruptcy of the tenant and without prejudice to theCh. 66] GUARANTEE?FORMS 303
foregoing provision of this clause this guarantee shall not be discharged by
your giving the tenant time in which to meet his rent or to her indulgence
in respect of his obligations under the said tenancy agreement.
4. If the said tenancy agreement shall be assigned with your consent or
shall be terminated by agreement or by re-entry or otherwise all future
liability on my part shall cease.
Dated the . . . . . . . day of . . . . .
[Signature of guar