Legal Question in Banking Law in India

i had given gurentee for loan for machinary while formation of our company which has 4 directors including me. Now that company is not doing well and i wish to withdraw my personal guarantee. Is that possible


Asked on 2/03/11, 3:38 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

You cannot now withdraw from the guarantee as it was given for a term loan for purhase of machinery. If you have given guarantee for cash credit or other working capital loan,you can withdraw your guarantee for future transactions and not for the outstanding debit balance in the said accounts.

Read more
Answered on 2/03/11, 10:16 am


Related Questions & Answers

More Banking Law questions and answers in India