Legal Question in Business Law in India

In a Consortium of Lenders the rights and powers of the Lenders are joint and several. The Lead Banker of the Consortium invokes a Personal Guarantee for itself. Will the Personal Guarantee be deemed invoked for the other Lenders? The Personal Guarantee has been signed only between the Guarantor and the Lead Bank acting on behalf of all Lenders.


Asked on 2/11/16, 9:16 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

12.02.2016

Dear Sir / Madam,

If the other Banks in the consortium have mutually agreed that all securities and guarantees rank parri passu amongst all the Banks in the consortium, then even though the Personal Guarantee being signed by the Guarantor and the Lead Bank alone, if invoked by the lead Bank, will be deemed to be invoked by all the other lenders too.

Regards,

Read more
Answered on 2/11/16, 10:24 pm


Related Questions & Answers

More Business Law questions and answers in India