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A guarantee from each member in a group of companies of the obligation(s) of each other member of the group.
1Specific Guarantee (One Time Guarantee)- Guarantee which is given for one particular transaction is called specific guarantee. The Client, to the satisfaction of the Bank, shall have granted and executed the Specific Guarantee in favor of the Bank. Proof of coverage termination is required.
A guarantee agreement is an agreement of a third party, called a guarantor, to provide assurance of payment in the event the party involved in the transaction fails to live up to their end of the bargain. They are common in real estate and financial transactions.
Contracts of guarantees may be classified into two types: Specific guarantee and continuing guarantee. When a guarantee is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, it is called a specific or simple guarantee.
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