LETTER OF GUARANTEE
TO [Insert Party A] , a company incorporated in Malaysia and having its registered office at [Insert Party A’s address]
1. IN CONSIDERATION of your withholding further legal and execution proceedings against [Insert Debtor’s Name](NRIC NO ….) and …..NRIC NO: …) both of … (hereinafter referred to as “the Principal Debtor”)
I, THE UNDERSIGNED GUARANTOR whose name and address appear below (hereinafter referred to as “the Guarantor”) do hereby irrevocably guarantee the due repayment on Demand of all outstanding sums that are due and owing by the Principal Debtors to you, which the Principal Debtors have now agreed to pay by instalment payments by the issuance of the following cheques :-
Cheque No Date Amount (RM)
The sum of RM[Insert Amount] (hereinafter referred to as “the agreed settlement sum”) includes interest and costs up to [Insert Interest]
a. This Guarantee shall continue to be in force until the agreed settlement sum aforesaid has been repaid by the Principal Debtors in full.
b. In the event any of the abovementioned cheques are dishonoured and/or stopped for payment or there is a default for any reason whatsoever, I hereby declare that you shall be at liberty to claim from me as absolute Guarantor the total outstanding sum due at that juncture together with interest accruing thereon at the rate of 8% per annum from the date of default together with costs on a Solicitors-Client basis that may be thereafter incurred to recover all outstanding monies from me as Guarantor.
c. I am giving this Guarantee voluntarily and with full knowledge of its effect and consequences.
Dated the day of 200….
Signature of Guarantor ………………………………………..
Name of Guarantor :
NRIC NO :
Address :
Signature of Witness ………………………………………
Name of Witness ………………………………………
NRIC NO ………………………………………
Address ………………………………………
………………………………………
………………………………………
