Demand on Guarantor

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date

{{date}}

Guarantor's Details

To: {{guarantor_name}}

{{guarantor_address}}

Subject: Formal Demand on Guarantee for {{debtor_name}}

Dear {{guarantor_name}},

This letter serves as a formal demand in accordance with the Guarantee Agreement ('the Agreement') executed on {{guarantee_agreement_date}} between {{company_name}} (the 'Creditor') and you, {{guarantor_name}} (the 'Guarantor'), concerning the financial obligations of {{debtor_name}} (the 'Principal Debtor').

Background to Demand

Under the terms of the Agreement, you unconditionally and irrevocably guaranteed the due and punctual payment and performance by the Principal Debtor of all their obligations, liabilities, and indebtedness to the Creditor. The Principal Debtor has failed to meet their obligations under the primary agreement dated {{primary_agreement_date}}, specifically regarding the payment of {{currency}} {{amount_due}} ({{amount_due_words}}), which was due on {{due_date}}.

Despite repeated requests and notices, the Principal Debtor has failed to rectify this default. Therefore, as per the terms of the Guarantee Agreement, {{company_name}} now calls upon you as the Guarantor to fulfill the obligations of the Principal Debtor.

Demand for Payment/Performance

We hereby demand full payment of the outstanding amount of {{currency}} {{amount_demanded}} ({{amount_demanded_words}}), which includes the principal amount, accrued interest, and any other charges as stipulated in the primary agreement and the Guarantee Agreement. This payment must be made within {{number_of_days}} days from the date of this letter.

Please remit the full amount to the following bank account:

Bank Name: {{bank_name}}

Account Name: {{account_name}}

Account Number: {{account_number}}

SWIFT/BIC Code: {{swift_code}}

Alternatively, if the guarantee involves performance rather than monetary payment, we demand that you perform the specific obligations as outlined in Clause {{relevant_clause_number}} of the Guarantee Agreement, within the aforementioned timeframe.

Consequences of Non-Compliance

Please be advised that if the demanded payment or performance is not received within the stipulated period, {{company_name}} reserves all its rights under the Guarantee Agreement and applicable law, including but not limited to, instituting legal proceedings against you for the recovery of the outstanding amount, together with any accumulated interest, legal costs, and enforcement expenses incurred.

Contact Information

For any queries regarding this demand, please contact {{contact_person_name}} at {{contact_phone}} or {{contact_email}}.

Yours faithfully,

___________________________

{{authorised_signatory_name}}

{{authorised_signatory_title}}

For and on behalf of {{company_name}}