Confirmation of Security and Guarantee

Summary

This precedent is a standard form of a confirmation of security and guarantee. It is often provided to a lender from a borrower or guarantor when there is a material change in credit facility. It contains practical guidance and drafting notes. This precedent is a standard form of a confirmation of security and guarantee in terms of which an existing obligor is required to confirm its obligations under an existing security agreement and/or guarantee agreement in connection with a refinancing of an existing credit facility under which it is an obligor. It is often provided to a lender from a borrower or guarantor when there is a material change in credit facility. What is considered material will depend on the lender's preference and risk tolerance, but some examples of common material changes include increase in facility size/loan amount, increased borrower's obligations under credit agreement, and extension of the maturity date. For related precedents, see Credit Agreement, ...