Board Resolution For Providing Corporate Guarantee

     

 Board Resolution For Providing Corporate Guarantee

“RESOLVED THAT in consideration of the STATE BANK OF PATIALA (SBP) having agreed to advance working capital facilities with an overall credit limit of Rs.50,00,00,000/- (Rupees Fifty Crore only) (hereinafter referred to as “the credit facilities”) in the manner and on the terms and conditions contained in the sanction letter no……… dated ………….......... to M/s ABC Pvt. Ltd., a company incorporated under companies Act, 2013 having registered office at ..................................................... (hereinafter referred to as the borrower”), one of the subsidiaries of M/s XYZ Ltd. (the Company) and the company do execute a corporate guarantee guaranteeing the repayment of the credit facilities along with interest in favour of SBP for and on behalf of M/s ABC Pvt. Ltd., the subsidiary company.

FURTHER RESOLVED THAT the Board of Directors of the company consider and declare the following:

1.  That the terms and conditions for providing corporate guarantee as annexed to the sanction letter no……….dated….communicated by the Bank to M/s ABC Pvt. Ltd. be and is hereby accepted as these are not prejudice to the interest of the company.

2.  The Board considered that the corporate guarantee is for an amount of Rs. 50 crore being approved for tenure of 5 years subject to renewal by the Bank.

3.   The Board confirm that the guarantee provided is not prejudicial to the interest of the company.

4.   The Board further considered receiving counter guarantee from M/s ABC Pvt. Ltd. in favour of the company M/s XYZ Ltd. to protect the interest of the company.

RESOLVED FURTHER THAT the draft of the Guarantee Agreement received from SBP along with its sanction letter no…….dated…… (Copies whereof duly authenticated by the chairman of the Board have been circulated to the members of the Board) be and is hereby approved and the Mr. MD, Managing Director of the company be and is hereby authorised to accept on behalf of the company with such modification therein as may be acceptable to SBP.

RESOLVED FURTHER THAT the common seal of the company be affixed to the guarantee agreement (with such modifications as may be agreed) in the presence of Mr. MD, Managing Director who shall sign the same in token thereof, and Mr. ED, Executive Director who shall counter sign the same in token thereof.

FURTHER RESOLVED THAT an undertaking to that effect that the company is willing to provide its corporate guarantee and execution of the necessary guarantee agreement for the above said purposes be furnished to SBP by Mr. MD, Managing Director and/or Mr. ED, Executive Director for and on behalf of the company for providing corporate guarantee.

RESOLVED FURTHER THAT, a copy of the foregoing resolution duly certified as a true copy be submitted to the Bank under signature of any one of the director of the company and the Bank do act upon the same.”

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