Give a guarantor independent legal advice on a bank guarantee
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- From the loan offer, guarantee, any mortgage the guarantor is giving and the information the bank has supplied about the borrower, build a table of the guarantee's limit, the securities, the borrower's position and the guarantor's rights to limit, withdraw from or end the guarantee. The tool writes nothing in the advice, any certificate or any confirmation to the bank.
- What the lawyer must review
- Meet the guarantor without the borrower, explain the obligations and risks personally, satisfy yourself the guarantor understands and is acting freely, and decide whether to give the confirmation of independent legal advice the bank asks for.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. From the loan offer, guarantee, any mortgage the guarantor is giving and the information the bank has supplied about the borrower, build a table of the guarantee's limit, the securities, the borrower's position and the guarantor's rights to limit, withdraw from or end the guarantee. The tool writes nothing in the advice, any certificate or any confirmation to the bank. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Confirm the instructions, the jurisdiction and the complete relevant material before starting.
- Confirm the lender subscribes to the Banking Code and which guarantor category applies, because some Code protections do not apply to director, trustee or partnership guarantors.
- Check the guarantee limit and securities in the table against the documents.
- Confirm no sentence produced by the tool appears in the advice file note or the confirmation.
- Check the output against the source documents named in it before it is relied on.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.