Corporate Guarantee

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Denis (Querist)
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22 March 2011 hi frndz,

does any one have format for corporate guarantee. its a bit urgent.

pls. send it to me asap.

regards,
dennis

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 March 2011 One format is given below. Modify according to your needs.

Format of Corporate Guarantee
THIS DEED OF GUARANTEE made this the day of ……….BY …………………….a
company incorporated under the Companies Act, 1956 with its Registered Office at
…………(hereinafter referred to as the “GUARANATOR” which expression shall mean and
include its successor and assigns) in favour of THE MARINE PRODUCTS EXPORT
DEVELOPMENT AUTHORITY, MPEDA House, Panampilly Avenue, Cochin – 682 036
(hereinafter referred to as “MPEDA” which expression shall mean and include its
successors and assigns)
WHEREAS:
1. MPEDA has evolved the Marine Products (Quality Marking) Rules to grant the
seafood processors registered with it and who meet the criteria prescribed by it a logo
to be affixed on seafood products exported from India by the processors, as a mark of
quality for marketing their products and
2. The GUARANTOR has, after referring and fully understanding the Marine Products
(Quality Marking) Rules and the terms and conditions and mandatory obligation for
availing the logo, applied to MPEDA for granting permission to affix the logo on
specified products exported by them from India and
3. MPEDA after scrutiny of the application and verification of the facilities and assuring
the capability of the GUARANTOR in complying with the requirements set forth by
MPEDA has decided to permit the GUARANTOR to affix the logo on its products and
pursuant thereto an agreement dated…….. (hereinafter referred to as the
“Agreement”) has been executed between the MPEDA and GUARANTOR.
4. One of the conditions stipulated in the agreement is that the GUARANTOR shall
furnish to MPEDA a corporate guarantee to secure compliance of the terms and
conditions of the Marine Products (Quality Marking) Rules and in consideration
thereof this deed is executed.
NOW THIS DEED WITNESSETH and it is hereby covenanted, agreed and declared by the
GUARANTOR as follows:-
(1) In consideration of MPEDA permitting the GUARANTOR to affix the logo under the
Marine Products (Quality Marking) Rules evolved by MPEDA on its products and the
GUARANTOR agreeing to abide by all the terms and conditions stipulated in the said
Marine Products (Quality Marking) Rules and the agreement, the guarantor personally
guarantees to pay to MPEDA the sum of Rs.5, 00,000/- (Rupees Five Lakhs only)
without demur and merely upon demand by MPEDA and without requiring MPEDA to
invoke any other legal remedy that may be available to MPEDA, it being understood
and agreed that MPEDA will be the sole judge as to whether the GUARANTOR has
committed breach of the any of the terms and conditions of the Marine Products
(Quality Marking) Rules or Agreement and that MPEDA’s right under this Guarantee
shall not be affected by reason of the fact that GUARANTOR may have raised any
dispute with regard to their liability.
(2) This Guarantee shall be a continuing Guarantee so long as the Agreement is in force. 1

(3) The Guarantee herein contained is independent and distinct and the GUARANTOR
will not claim to be discharged to any extent because of MPEDA’s failure to secure or
obtain any other security or losing for any reason whatsoever any other security that
has been taken.
(4) MPEDA shall have the fullest liberty without in any way affecting this guarantee and
discharging the GUARANTOR from its liability hereunder, to postpone for any time or
from time to time or forbear to enforce the covenants under the Agreement or any
other covenants contained in or implied by the Marine Products (Quality Marking)
Rules or any other remedies or securities available to MPEDA or to grant any
indulgence or facility to the GUARANTOR and the GUARANTOR shall not be
released by any exercise by MPEDA of its liberty with reference to the matters
aforesaid or any of them or by reason of time being given to GUARANTOR nor any
other forbearance act or omission on the part of MPEDA or any other indulgence by
MPEDA or by any other matters or things whatsoever which under the law relating to
sureties would but for this provision have the effect of so releasing the GUARANTOR
and the GUARANTOR hereby waive all suretyship and other rights which they might
otherwise be entitled to enforce.
(5) In order to give effect to the Guarantee herein contained MPEDA shall be entitled to
act as if the GUARANTOR is the principal debtor to MPEDA for all payments and
covenants guaranteed hereunder.
(6) The Guarantee herein contained shall not be revoked or effected by the release of
any one or more of the Guarantors and shall continue to be binding and operative as
regards the remaining Guarantors.
(7) The liability of the GUARANTOR under this guarantee shall not be affected by any
change in the constitution of MPEDA or the GUARANTOR.
(8) The execution of this Guarantee has been duly authorized by the General Body of the
GUARANTOR on …….
(9) If any time default shall be made in payment of the amount guaranteed hereunder
MPEDA shall be entitled to recover the same with interest from the GUARANTOR
personally and from their properties and the GUARANTOR will indemnify and keep
indemnified MPEDA against all loss of principal interest and other moneys secured by
this Guarantee and all costs charges and expenses whatsoever which MPEDA may
incur by reason of any default on the part of GUARANTOR.
IN WITNESS WHEREOF the GUARANTOR has executed this deed and the common seal
of the GUARANTOR affixed hereto on the day and year first above written.
Signed and delivered on behalf of ……..…….
By its Directors, Mr……………......………
and Mr………………………..and the common seal affixed hereto as authorized by
resolution dated ……………of the Company in General Meeting

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