Step back for bank gurrantee

Ankarsh Rattan (Querist) 04 July 2013 This query is : Resolved
I am working in the Punjab Govt Deptt. My colegue had taken a loan from co-operative bank and i had paid gurrantee for that. Should I take back the bank gurrantee, which i already given.

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Guest (Expert) 04 July 2013
Depends upon whether the bank accepts your request and ask your friend to submit a fresh bank guarantee in lieu of your bank guarantee.

However, there is no harm if you write to the bank stating in clear terms that you withdraw the bank guarantee from some specific date, i.e., the date of your letter to the bank.

Rajendra K Goyal (Expert) 04 July 2013
Agree with the expert PS Dhingra ji.
Generally Bank does not agree such request till the loan is paid back. In case Bank agree and borrower is ready to give acceptable guarantee you should try for it. Sometime on receipt of the letter withdrawing guaranty, the Bank recalls the total loan from both borrower and guarantor and if not paid back recovery proceedings may be started against both.

Raj Kumar Makkad (Expert) 04 July 2013
Bank generally do not permit such withdrawals and do not disturb their mortgage/guarantee just on the whims and wishes of the guarantor/mortgagor.

R.K Nanda (Expert) 04 July 2013
nothing to add.

prabhakar singh (Expert) 04 July 2013
Much depends on the language of the deed of guarantee you signed.

You can not withdraw in any circumstance if it is a continuing guarantee deed.

You can if it is not of that kind if Bank enhances limitation by getting signed an acknowledgement.

Then without going through the deed of guarantee it would be merely a wild guess
you can or you can not.

Better arrange with debtor that he produces other guarantor to replace you.

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