Common use of Nature of the Guarantee Clause in Contracts

Nature of the Guarantee. The guarantee is an autonomous demand guarantee and is payable upon first demand. In the event of a Guarantee Call, the States waive their right (without prejudice to their rights vis-à- vis the Guaranteed Entities) to invoke any exceptions that the Guaranteed Entities could assert against the Third Party Beneficiaries or Security Holders to refuse payment. All the Guaranteed Obligations of the Guaranteed Entities shall be severally, but not jointly, guaranteed by the States. The Guarantee granted by each of the States is therefore not limited to the Guaranteed Entities established on its own territory but shall also apply for Guaranteed Entities established outside its territory.

Nature of the Guarantee. The guarantee is an autonomous demand guarantee and is payable upon first demand. In the event of a Guarantee Call, the States waive their right (without prejudice to their rights vis-à- à-vis the Guaranteed Entities) to invoke any exceptions that the Guaranteed Entities could assert against the Third Party Beneficiaries or Security Holders to refuse payment. All the Guaranteed Obligations of the Guaranteed Entities shall be severally, but not jointly, guaranteed by the States. The Guarantee granted by each of the States is therefore not limited to the Guaranteed Entities established on its own territory but shall also apply for Guaranteed Entities established outside its territory.