Course Assignments
Guarantee and Postponement of Claim
Rationale for this assignment
This agreement is often made at the same time as a General Security Agreement(“GSA”). A mini-lecture introducing the use of a GSA together with a Guarantee is available in the GSA assignment module. Students who complete the two assignments will be able to explain how the two agreements work together in debt financing.
Assignment Description
Regarding the above contract, I am NOT asking students to summarize the 6 pages of background reading or asking you to give a general description of a guarantee and its purpose. The 6 pages of readings in the text described in the course schedule may help you with this paper by giving you context. Your 1 page paper will demonstrate that you have critically reviewed the Guarantee and Postponement of Claim and are prepared for class discussions. Use the various tools you have tried so far this course. Come to class armed with your questions comments and concerns recorded in your paper. Describe at least three of the lender’s business priorities and describe the ways this agreement benefits the lender. I’m looking for evidence that you really thought about this short document; Wrap your mind around the details.
READING: Chapter 26, pp. 381 to 386 in the 13th edition or 14e pages 353 to 357.