Check a guarantee and the guarantor’s protections before demanding payment
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the guarantee, the facility documents and the default history, extract the guarantee’s limit, the guaranteed obligations, any conditions on making a demand, the notices the guarantee and any applicable code require, and the dates each was given, and flag any gap.
- What the lawyer must review
- The lawyer decides whether the guarantee is enforceable and to what amount, whether the creditor is bound by a code of practice that gives the guarantor further protections, whether those protections were met, and settles the demand.
- 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 | From the guarantee, the facility documents and the default history, extract the guarantee’s limit, the guaranteed obligations, any conditions on making a demand, the notices the guarantee and any applicable code require, and the dates each was given, and flag any gap. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the guarantee limit and whether interest and costs are within it.
- Confirm whether the creditor subscribes to the Banking Code of Practice and, if so, which guarantor obligations apply.
- Check each notice the guarantee requires was given before the demand.
Sources
- Australian Banking Association — Banking Code of Practice (2025) · 2026-10-18
- Banking Code Compliance Committee — Banks’ compliance with the Banking Code’s guarantee obligations (August 2021) · 2026-10-18
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.