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United Kingdom
United Kingdom
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Loan definition What does Loan mean? In legal practice, a loan is an advance of money by a lender to a borrower with a binding obligation to repay the principal sum, usually with interest, either on demand or at agreed dates during a term. Loans may be secured or unsecured and may be documented as a loan or facility agreement, promissory note or deed. Repayment may be amortising or bullet. Interest and fees (for example, arrangement, commitment or default interest) are commonly payable but are not essential to a loan’s validity. The term is a descriptive expression used across commercial, consumer and corporate finance; specific statutes...
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Enforcing finance guarantees: conditional and pure guarantees, demands, co-guarantors, syndication, individual guarantors, insolvency and moratoria
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Practice notes
This Practice Note reviews the principal considerations around enforcing guarantees in a financing transaction, namely where a lender (most often a bank) has extended a Loan to a corporate borrower that is supported by a guarantee from another group company of the borrower (eg the borrower’s parent company or one of its subsidiaries). It addresses the following questions:
- what claim does a lender have against a guarantor?
- by what means can a lender enforce a guarantee?
- how is enforcement approached where there are multiple guarantors?
- are there particular points to consider in syndicated transactions?
- are there any distinct considerations for guarantees given by individuals?
The law regulating guarantees is complex and at times inconsistent; accordingly, this Practice Note is intended as a springboard for more detailed analysis.
What is the nature of claim that a lender has against a guarantor?
To determine the nature of the claim a lender has against a guarantor, it is necessary to look at the form of the guarantee provisions contained in the relevant guarantee. Guarantees...
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Web page updated on 21/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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