Omnibus Counter Guarantee

Hi Shridhi,

Normally Bankers take CBIL disclosure

1. to authorise them to to check the name of the company on CBIL site that company is not under  default of interest or principal componant for loan,
   
2. to take declaration from the company that company is not in default for the payment of interest or principal for any loan.
   

Master agreement is standard agreement which will vary from bankers to Bankers. Bankers take this agreement from all of its borrowers. This will consist of  general defination, terms and cpnditions and recourse to bankers in case of default.

Omnibus counter  Gurantee is required when bankers insist for additional guarantee in addition to security provided. It will come into force when borrower is not able to pay due amount and security provided is not sufficient to settel the loan. In the event of default Bankers will first approach to borrower, if he is not able to make full payment they will invoke guarantee after realizing security.

Regards

Jaideep Pandya

Thanks Jaideep for your kind reply.

Talking about master agreement, I understood that. But what is ISDA Master Agreement. Whats its purpose and need ?

If you are talking about ISDA... it is reffered as International Swaps and Derivatives Association (ISDA).

ISDA Master Agreement required to enter into derivative transaction.

These are also called as ISDA Master agreement. May be in ur case its different.

Regards

Jaideep Pandya