As the term indicates, the «total monetary guarantee» generally covers «all funds» owed to the principal debtor (including all obligations that will be incurred in the future). In principle, the security of «all funds» should guarantee modified obligations without the need for a new guarantee. However, it is advisable to obtain written confirmation from the debtors that the existing guarantee remains fully in effect, notwithstanding the changes made. Such confirmation should always be obtained when the amount of debt is increased. The most appropriate form of documentation depends on the nature of the amendments. In the event of minor changes, an amendment agreement (or letter) may be appropriate. For changes that are larger and more complex, an amendment and recovery agreement may be more appropriate (effectively replacing the existing facility agreement). There may be other factors of influence. For example, it may be necessary to amend and adapt the old facilities agreements to make the conditions compatible with the current policy requirements of donors or with existing legislation. In any case, it is important to review the most pragmatic and cost-effective approach. There are a number of factors to consider. For example, changes or the definition of «financial documents» in the existing facility agreement, which contains future documents, are important.
The fundamental principle must be to check whether security is «all funds» or «specific funds». 3. Checking the wording of the existing facility agreement This is contrary to the «specific financial guarantees» that provide obligations arising from a number of financing documents or a specific agreement. It is unlikely that the «specific monetary guarantee» will continue to guarantee the change in commitment. Consider the circumstances and the exact drafting used in the original security document to ensure that the funder has the advantage of having an authentic «All-Monis» guarantee. The parties agree that from the effective date, the parties agree that they have the rights and assume the obligations assigned to them under the agreement on the facility of restitutio integrum. Single waivers and consents occur when the borrower`s circumstances have changed more temporarily. For example, it may have had a bad quarter, which led to the temporary break-up of a financial federation. Under these conditions, the borrower will not need a permanent amendment to the facility agreement, but only a short-term waiver from the lenders to prevent it from being late in payment. Sometimes the borrower does not need a waiver from the lenders, but rather the agreement of the lenders for what he wants to do that is prohibited by a negative company in the facility agreement.