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Brisbane-Lawyer
Brisbane-Lawyer, Solicitor - Admitted 2005
Category: Australia Law
Satisfied Customers: 14361
Experience:  I did my law degree at the University of Queensland
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how does a deed of comfort work as a guarantee in relation

Resolved Question:

how does a deed of comfort work as a guarantee in relation to holding a sum of credit
Submitted: 7 years ago.
Category: Australia Law
Expert:  Brisbane-Lawyer replied 7 years ago.
There are a few purposes for a Deed of Comfort. If its not too long to type out what the Deed you are referring to says, it would assist me in being able to answer your query.

Also, any additional information regarding the circumstances in which this credit is being provided would be helpful as well.
Customer: replied 7 years ago.

I am a club professional under a contract of engagement at a private golf course.

The pro shop is my business and i am paid a retainer for services provided to approx 850 members.The members win vouchers in competition redeemable through my shop.

The board has now asked me to guarantee the members credit by bank guarantee.

I hold approx $27000 in credit on members accounts redemmable in product/services from the pro shop.This means i would have to have set up a term deposit acc with this money set aside for duration of contract.A bit harsh considering i have been their club pro for 15 years completely incident free.But as committees come and go there is always one cowboy trying to change the world. So this deed of comfort i may be able to use as another avenue.I want to know if and how i could use this in my situation so i dont have to fund this money.

Cheers

Stevekkk3

Expert:  Brisbane-Lawyer replied 7 years ago.
Okay, thank you for the additional information Steve.

"The board has now asked me to guarantee the members credit by bank guarantee.... This means i would have to have set up a term deposit acc with this money set aside for duration of contract."

Not quite. It means that the committee wants you personally guarantee the members credit, so that if the money goes missing or is misused, then you personally are on the hook to repay it.

"So this deed of comfort i may be able to use as another avenue."

A bank guarantee can only be provided by the bank itself, and no bank is going to guaranteee anything unless they have some security.

What you need to provide to provide the committee with is a personal guarantee which can be drafted by a solicitor whereby you guarantee the members credit by way of a charge which could be registered against your home.

If my answer has been helpful or informative to you, please hit the Accept button.

Customer: replied 7 years ago.

The main question is can a deed of comfort draw up by a lawyer suitable as a guarantee in this situation

thanks

Customer/p>
Expert:  Brisbane-Lawyer replied 7 years ago.
No,

The best option is to use a Conditional Performance Bond, which is actually a type of deed. A lawyer can readily draft one of these up for you.

It is then kept by the committee in case they ever need to enforce it against you.

If my answer has been helpful or informative to you, please hit the Accept button.
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