Letter of Guaranty

A letter of Guaranty is a letter that is issued by a bank to vouch for one of their clients ability to make payments. It is usually used on checks, where the bank will guarantee the funds will be available up to a certain amount to be withdrawn using a check on a certain account. This document is just another level of safety for people doing business with an individual, knowing they have available funding. It is especially important when paying by check for purchases over $1000.

Sample letter of guaranty

RE: Manuel Baptiste

This letter serves as a guarantee that the Royal Bank of Canada will irrevocably guarantee payment of any checks written on Manuel Baptiste’s account up to and including the amount of $5,000. The funding is available to come from account #544674.

There will be no stop payments issued. If you cash this check before December 16th, 2009, the money will be there.

This guarantee is for the purpose of Manuel Baptiste purchasing a new car on or before December 16th, 2009.

If you need any more information about this letter, please contact the Royal Bank of Canada at 243-342-3423.


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