A Deed of Guarantee and Indemnity is a document produced by credit providers to secure a sum of money, but can also be used in business to secure lines of credit by suppliers or services providers. The most common form of guarantee and indemnity contracts are used by banks and credit unions when you go for a loan or business facility.  All banks and credit providers have their own version of this document, and the rights within these documents can vary. For example, if you are taking out a loan with one of the Big 4 banks, the Deed can be quite long. If you borrow with a smaller bank or credit union, the document may be shorter. However, Deeds of Guarantees and Indemnities often contain these specific clauses:

  1. The bank or credit union can call upon the Guarantee at any time;
  2. The Guarantor is liable for the full amount of the liability (not just the borrowed sum, but also interest and other costs associated with the borrowed sum including GST and other taxes)
  3. The Guarantee survives even if the borrower goes out of business or dies;
  4. The bank or credit union can do whatever it likes with the guaranteed sum (subject to relevant laws) including applying it for a “legitimate commercial interest” of that bank or credit union.
  5. The bank can hold on to the guarantee for a certain period of time after the guarantee has been paid in full.

For more information on Deeds of Guarantee and Indemnities, or if you need to get your Guarantee document reviewed, please call us on 1300 272 878 or email us at You can also upload your Deed of Guarantee and Indemnity for review through our client portal.


Interpret Contracts services clients in Adelaide, Brisbane, Canberra, Darwin, Melbourne, Perth, Sydney, Hobart and regional Australia.

4 Messages

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  • Reply

    Thanks so much for your comments! I'm glad you are finding this blog post useful. Stay tuned for more information on different contracts!

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