Q&As

If a lender assigns a loan and its supporting guarantee to another lender (assuming there are no restrictions on assignment in the loan or guarantee documentation), is the validity of the guarantee affected in any way?

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Published by a ½Û×ÓÊÓƵ Banking & Finance expert
Published on: 12 July 2017
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We refer you to Practice Note: Guarantor protections and how to exclude them in guarantee documentation—waiver of defences clauses, in particular the section: Change in identity of the parties. This provides:

Any change in the identity of the principal or guaranteed party will revoke a guarantee as to future transactions

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United Kingdom

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