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Ash
Ash, Solicitor
Category: Bankruptcy Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Can a bank demand payment of a personal guarantee without moving

Customer Question

Can a bank demand payment of a personal guarantee without moving against the borrowing company by appointing a receiver/liquidator?
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
You need to check the wording of the guarantee but yes. Usually it is repayable upon demand.
Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.

Hello Alex,

I appreciate that it will depend on the wording of the facility/security docs but is it possible for a lender to serve a demand on a guarantor despite other security being available which they have not enforced upon.

Would this be deemed as not being fair or equitable on the guarantor?

Is there any case law you could provide.

Thanks

Expert:  Ash replied 2 years ago.
Yes it is possible that they can serve a demand despite other security being available. It really is the terms of the guarantee you need to examine as it is a matter of contract.
Sadly case law is beyond the remit of this site but if you go to:
http://www.bailii.org/
Alex
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex