Deed of guarantee - release and new guarantee

This document is a deed of release and new guarantee.

It is intended for use where an agreement is reached wherein an existing guarantor is allowed to be released from its obligations provided a substitute guarantee is provided. This might occur, for example, where a director-guarantee is released on the sale of the company, or where a partner-guarantee is released on retirement from the partnership. Provision is included to ensure that any guarantor whose liability is to continue notwithstanding the release consents to the release.

The covenants on the part of the new guarantor in this deed are identical to those contained in the Property PSL licence to assign, which themselves are based on the guarantee covenants used in Property PSL leases.

Before using this precedent document, it is advisable to read the detailed drafting notes relating to the guarantee provisions included in all Property PSL leases. These can be found with the Property PSL lease of whole (office).