UK GOVERNMENT GUARANTEE
An overview of the Bond Guarantee issued by the Government, accompanied by a link to the official MHCLG (then DCLG) document
The guarantor unconditionally and irrevocably guarantees to the Guaranteed Creditors the due and punctual performance by the issuer of the Guaranteed Obligations…
– Guaranteed Creditors being: Bondholders, Couponholders and Trustee
– Guaranteed obligations being: all present and future payment obligations and liabilities of the issuer (whether actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) which are, or may become, due, owing or payable to the Guaranteed Creditors under the Bonds, Coupon or Trust Deed, together with all costs, charges, fees and expenses incurred by the guaranteed creditors which are, or may become, due, owing or payable by the issuer under the bonds, coupons the Trust Deed or the Guarantee.
The Guarantee is supplemented by an Indemnity for all losses, liabilities, Costs and Expenses resulting from a failure of the Issuer to perform or discharge any Guaranteed Obligation; and/or the unenforceability, invalidity or illegality of any Guaranteed Obligations
The Guarantee can only be released when all Guaranteed Obligations have been unconditionally and irrevocably paid or discharged in full
Prefunding of issuer accounts ensures timely submission of Notice of Demand and timely payment under the Guarantee of the Guaranteed Obligations……..
To view the complete list of Scheme Rules, kept as a matter of record, please visit: DCLG Scheme Rules