Common use of Performance of Guaranty Clause in Contracts

Performance of Guaranty. 3.1 In case of default by the Obligor upon the expiry of the term under the Master Agreement (or expiry date as declared by the Creditor), the Guarantor shall unconditionally pay the relevant amount to the Creditor after the Creditor has notified the Guarantor in writing to do so. Any statement signed by the authorized representative of the Creditor which can prove the default of the Obligor (unless otherwise proved to be obviously wrong) shall be deemed as the notification of the Creditor demanding the Guarantor to pay the relevant amount. 3.2 The Guarantor irrevocably authorizes the Creditor to transfer directly any defaulting amount of money from the bank account of the Guarantor to the account of Creditor. The Creditor shall notify the Guarantor in writing of such transfer and is entitled to demand the Guarantor to pay for the unsettled indebtedness.