In loan transactions, lenders normally require the borrower to provide collateral or other forms of security to secure the debt obligation of the borrower. One such form of security, which is widely recognized and used across various jurisdictions, is third party guarantees. A guarantee is a promise by one party (the “Guarantor”) to assume the financial responsibility for the debt obligation of a borrower in the event the borrower defaults on its debt obligation under the loan transaction by the borrower. Where the borrower is a corporate entity, the parent company or the shareholder of the borrower, often assumes the role of a Guarantor for the debt obligations of such borrower.