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could you kindly confirm the exact wording of the provision from the guarantee deed please?
Transfer of Rights
21 (a) The Bank may transfer all or any part of its rights under this Guarantee to any person at any time.
(b) If the Bank trasnfers all or any part of its rights under this Guarantee, your rights under this Guarantee will stay exactly the same
(c) You will be bound to any person to whom the Bank transfers any such rights. That person will have the Bank's power and rights so far as the Bank transfers these to that person.
(d) The Bank will be released automatically from its obligations to you so far as that person assumes the Bank's obligations.
(e) You will, at the expense of the Bank or the person to whom the rights are transferred, do anything reasonably requested by the Bank to effect a transfer of all or any part of its rights under this Guarantee
(f) You will not transfer all or any part of your rights under this Guarantee without the prior written consent of the Bank
(g) In these Transfer of Rights provisions and in the Disclosure of Information provisions above: (i) the term transfer means sale, assignment and/or transfer (ii) the term rights means rights, benefits and/or obligations; and (iii) the term person means any person, trust, fund or other entity
Thank you. Such a provision is quite normal for debts because banks like to be able to sell debts on to third parties.
Whether a bank will choose to do so is entirely a commercial decision based on 1) their business plan and 2) your creditworthiness and how you operate the facility. e.g. if you were to fall into arrears the bank may decide to offload what it considers to be high risk debts to a third party lender who specialises in this area.
Large mainstream lenders transfer debts less readily than small lenders who often do so to refinance as they shift business models. If they do transfer the benefit to a third party they do so on the basis that the third party takes the transfer on exactly the same terms. Terms cannot be altered unilaterally outside the terms provided for in the present terms and conditions.
Is there anything above I can clarify for you any further?