Bank guarantees after rescheduling: consent, variation and continuing liability
Guarantee terms and statutory discharge principles under the Contract Act, 1872 must be considered together.
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NINETY TWO CHAMBERS / INSIGHTS
THE JOURNAL / NINETY TWO CHAMBERS
Banking & Finance
Read analysis by legal discipline. Articles appear only after editorial approval and publication.
Receivables Security, Collection Accounts and Enforcement Priorities
A lender may take security over trade receivables and future customer payments, then discover on default that funds are being paid into accounts it cannot control.
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Cross-Default, Negative Pledge and Financial Covenants in Corporate Finance
Financing documents can place a solvent operating company in technical default while its scheduled repayments remain current. Cross-default clauses, negative pledges and financial covenants transfer risk across a borrower's business. Their drafting deserves attention because the events that activate them may.
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Corporate Borrowing in Pakistan: Charges, Guarantees and Perfection of Security
A signed facility agreement does not, by itself, give a lender effective security. The value of collateral depends on the chargor's title, the legal character of the instrument, the required registration or perfection steps and the ability to enforce it when payment fails. Those questions should be answered.
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On-Demand Bank Guarantees: When Can Encashment Be Restrained?
A supplier may believe that the employer has wrongfully terminated a contract. A contractor may have substantial claims for unpaid milestones and extensions of time. Yet the beneficiary may still be entitled to demand payment under an unconditional bank guarantee before those underlying claims are.
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