Counter Guarantee In Favour Of A Bank Deeds Guarantee And Indemnities 1558 Legal Draft Template

In consideration of………….Bank having at our request stood as surety for and guaranteed payment of a sum of Rs……….to the Registrar of…….. Court in terms of guarantee dated this…….. day of 2005 executed by the bank in his favour in Suit No………….. of (Cause title) in the circumstances mentioned in the said bond we GB and AB of………… do hereby covenant and agree by way of counter guarantee that we shall always remain jointly and severally liable to pay and reimburse the Bank or its successor in business to the extent of Rs……….. and or any other sum or sums as may be due and owing to the bank or its successor in business on that account inclusive of interest and costs, charges and expenses incurred and to indemnify and keep the bank indemnified against all such payments and all costs, charges and expenses which the bank shall incur or otherwise suffer by reason thereof.
We further declare that this guarantee unless we are otherwise relieved from its performance or non-performance by Statute or adjudication of any court of competent jurisdiction shall be a continuing guarantee and shall not be deemed to have been satisfied until payment or realisation of the amount as hereunder contemplated; Further we declare that the character of this guarantee shall not be affected by death or insolvency of any one or more of us and furthermore that we shall execute and register all further or other deeds and writings as may be required for securing or enforcing the counter guarantee and have all questions or disputes as to the extent of our liability to the bank adjudicated by reference to two arbitrators one to be appointed by the bank and we shall not be discharged by any compromise between the parties in the said suit unless the bank is discharged from its liability by adjudication of the said court.
In witness whereof etc.
Dated this………. day of……… GB
AB