1. At the outset, you should get a copy of the guarantee you signed and see what its terms were. However, irrespective of the guarantee you signed, a guarantee lapses once the risk guaranteed by the guarantee alters. Accordingly, if you signed a guarantee for a loan in 2006, which was then repaid in 2009, the guarantee would have lapsed, as the risk would have altered subsequently, if another loan was taken out.
2. This is a rule of equity that the obligations of a guarantor lapse if the risk guaranteed by the guarantee alter in amount or extent such that repayment on the guarantee would be unconscionable as the extent and nature of the guarantee would be different to when it was signed. So here you will be able to rely upon this rule to prevent repayment.
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