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This Practice Note looks at releasing a guarantor by agreement between the parties but it is important to note that there are a number of other circumstances in which the liability of a guarantor which has guaranteed the obligations of one or more borrowers of a loan facility (the ‘guaranteed obligations’) will terminate. For example, the guarantee could terminate because:

1. •

   the borrower has repaid the guaranteed obligations and the guarantee is discharged or the guarantor has paid out under the guarantee—for more information, see Practice Note: Discharging guarantees by repayment or performance and clawback considerations

2. •

   the guarantor has given notice of revocation of the guarantee—for more information, see Practice Note: Voluntary revocation of guarantees by the guarantor giving notice to the lender, or

3. •

   certain circumstances have arisen which result in the guarantor's liability under the guarantee being discharged, extinguished or reduced—for more information, see Practice Note: Guarantor protections and how to exclude them in guarantee documentation—waiver of defences clauses

Where applicable, this Practice Note highlights relevant provisions in the Loan