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3/29/2014
Alice H, Solicitor/Partner
Category: UK Law
Satisfied Customers: 2,915
Experience: Solicitor of England and Wales
VerifiedMy name isXXXXX and I'm happy to help with your question today. I need to ask you some preliminary questions to be able to help you.
Do you have a copy of the guarantee document? There should be a clause to exit on notice.
Do you have a copy of the guarantee document? There should be a clause to exit on notice.
Hello Graham
Your number is XXXXX appearing on my screen but let me give you my answer on this to save time.
Once a personal guarantee is given, a guarantor is not usually able to cancel it in the event that the guarantor changes his mind at a later date. In addition, a personal guarantee remains in existence even if there is no amount outstanding at any particular point in time.
A personal guarantee will normally allow for termination on notice (often, three months) in respect of any new liabilities. You need to check your guarantee document for this.
However, even when notice is given, the guarantee will remain binding in respect of any liabilities which have already been incurred by the company prior to the expiry of the notice to terminate. The only sure way to bring a guarantor’s liability under a personal guarantee to an end is to ask the bank to give a written release.
If the bank will not release you then you should give notice to terminate as soon as possible. Unfortunately this will not release you from past liability when the guarantee was operational but will release you from future liability. Unfortunately you will not be able to escape liability altogether.
Hope this helps to clarify the position.
Alex
Your number is XXXXX appearing on my screen but let me give you my answer on this to save time.
Once a personal guarantee is given, a guarantor is not usually able to cancel it in the event that the guarantor changes his mind at a later date. In addition, a personal guarantee remains in existence even if there is no amount outstanding at any particular point in time.
A personal guarantee will normally allow for termination on notice (often, three months) in respect of any new liabilities. You need to check your guarantee document for this.
However, even when notice is given, the guarantee will remain binding in respect of any liabilities which have already been incurred by the company prior to the expiry of the notice to terminate. The only sure way to bring a guarantor’s liability under a personal guarantee to an end is to ask the bank to give a written release.
If the bank will not release you then you should give notice to terminate as soon as possible. Unfortunately this will not release you from past liability when the guarantee was operational but will release you from future liability. Unfortunately you will not be able to escape liability altogether.
Hope this helps to clarify the position.
Alex
Alice H, Solicitor/Partner
Category: UK Law
Satisfied Customers: 2,915
Experience: Solicitor of England and Wales
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