Bank Guarantees and Security Documentation

Banks frequently require their Borrowers or Guarantors or their Spouses to take independent legal advice upon the meaning of the ‘security’ documents which they are being required to sign eg in relation to purchase of Partnership or Limited Company shares, borrowing of new or further business funding or permitting personal assets to be used as security for Business lending.

We understand these transactions and whilst you may think we are only witnessing your signature the reality is we are having to read all the Lending / Guarantee documentation in order to explain their full impact to you especially as to the extent of your risk.  We also have to obtain confirmation that you are who you say you are and report to the Bank.

There is a risk to us in carrying out that work at least to the extent of the Loan if we do not get it right and so our fee is commensurate to that risk and not just the witnessing of your signature