DEED OF CONTINUING GUARANTEE BY A SURETY FOR SECURING THE BALANCE DUE OR ACCOUNT WITH A BANK

THIS DEED of Guarantee made on the…………….day of……………. 20……………. between A, son of …………….resident of …………….(hereinafter called the Surety) of the ONE PART and the…………….Bank, a body corporate constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 and having its head office at…………….(hereinafter called the bank) of the OTHER PART.

WITNESSES AS FOLLOWS:

1. In consideration of the Bank opening and keeping account of M/s. X Y Co., a partnership firm, carrying on the business of…………….and making advances to and for the accommodation of the said firm X Y Co., the Surety hereby guarantees to the Bank the payment of all sums of money that may be due from the said firm X Y Co. from time to time on the general balance of the said account subject to the covenants hereinafter contained.

2. The Surety and the Bank hereby mutually agree as follows:

(i)That the liability of the Surety shall not at any time exceed the sum of Rs. …………..with interest thereon at……………. per cent per annum.

(ii)That the guarantee hereby given shall be a continuing guarantee and shall not be considered as wholly or partially satisfied by the payment or liquidation at any time or time hereafter of any sum or sums of money for the time being due upon such general balance as agreed but shall, subject to the aforesaid limit, extend to cover and be a security for all future sums at any time due hereafter.

(iii)That the neglect or forbearance of the Bank in enforcing payment of any moneys, the payment whereof is intended to be hereby secured or the giving of time by the Bank for the payment thereof shall not in any way release the Surety of his liability under the guarantee hereinbefore contained.

(iv)That the guarantee hereinbefore contained shall not be affected by any change in the constitution of the Bank or in the constitution of the said firm X Y Co.

(v)That the guarantee hereinbefore contained shall not be affected by the death of the Surety, but shall continue in force till two calendar months after notice in writing has been given to the Bank by the Surety or his representatives.

(vi)That any account settled between the Bank and the said firm X Y Co. shall be conclusive evidence against the Surety of the amount due on the said account and shall not be questioned by the Surety.

IN WITNESS WHEREOF the Surety has executed these presents the day and year hereinabove written.

Signed and delivered by the within named Surety A

WITNESSES

1 .