This guideline lays down the responsibilities of institutions towards guarantors and sets out the framework and prescribes the instances for issuing statements of accounts in written or electronic form to guarantors of credit facilities. The purpose of this Guideline is to provide for, inter alia, (i) the responsibilities of institutions towards guarantors; (ii) the classes or categories of credit facilities for which a statement of account shall be sent or made available to guarantors; and (iii) the circumstances under which the statement of accounts shall be sent or made available to guarantors. The Bank may require every institution to send or make available to the guarantor of a credit facility extended by it, a statement of account in written or electronic form, in accordance with guidelines or instructions issued by the Bank. The duty of confidentiality imposed on institutions under that section does not apply where credit information is required for transmission to the guarantor of a credit facility contracted by the borrower. The institution shall explain to the prospective guarantors, the responsibilities that may devolve on them in case of default of the borrower as well as the type of guarantee they are contracting. The institution shall also recommend the prospective guarantor to read and understand the contract of guarantee before executing the guarantee documents. Institution shall inform the prospective guarantors they may, amongst others, before and after the signature of the contract of guarantee: request for a copy of the contract signed by them; (a) make enquiries from the MCIB on information which has been registered in their name by the institution; (b) make a complaint if they feel aggrieved by the acts or omissions of the institution and the institution shall inform them of its complaint procedures; (c)seek legal advice before signing the contract of guarantee to ensure that they understand the commitment and the potential consequences of acting as a guarantor; the costs of which will have to be borne by the guarantor. The institution shall explain to the prospective guarantors, the responsibilities that may devolve on them in case of default of the borrower as well as the type of guarantee they are contracting. The institution shall also recommend the prospective guarantor to read and understand the contract of guarantee before executing the guarantee documents. For credit facilities below the amount specified in the First Schedule of the Borrower Protection Act 2007, institutions are bound by the provisions of section 9(2) of the aforementioned Act. The institution shall inform the guarantor that he may, at any time during the credit facility period, submit a request for a statement of account and the institution shall promptly provide him with a copy of the statement.
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