Legal Question in Banking Law in

If the bank is a cooperative bank ,than the director can not give guarantee in such case. even such company can not take loan against the restrictions of reserve bank and cooperative law. But in other case, the guidelines of reserve bank, the company law, and the memorandum and articles of bank; etc. should be considered. Moreover the guantee documents should also be checked. After all these scrutiny,the liabilities can be desided.---Mahendra Bhavsar-------www.mahendrabhavsar.com

your question is not clear. Is the Director who is required to give a guarantee on behalf of a private ltd. co. is also a director in the Bank. If that be the case, the bank cannot at all lend to the company. If the director of the pvt. Ltd. company is not a director in the Bank which lends money, by giving a guarantee, he will have to cough up the money from his sources, if the company on behalf of which he gives guarantee defaults in payment

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