Guarantee, Suretyship & Co-Principal Debtorship

Priyesh Modi
Feb 15, 2022
1 min read

Always use a “triple barrel shotgun” when taking security by asking the other contracting party for a “Guarantee, Suretyship & Co-Principal Debtorship” as defences on one of these forms of security may not apply to the other/s. And for good measure, you could ask for an Indemnity as well.

#mergersandacquisitions

#boardsofdirectors

#corporatefinance

Recent Posts

See All

Pledge

In South Africa, security over financial instruments is typically established through a pledge, cession in security, or a combination of...

Delegation of Authority

Directors often delegate certain functions and tasks to company employees or rely on the advice of experts. However, under South African...

Suretyships and Guarantees

In South Africa, banking and finance transactions often involve suretyships and guarantees. A guarantor's obligation depends on what the...