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Continuing Guarantees – Negotiable Instrument
A continuing guarantee is such type of a guarantee that extends to a series of transactions, so and such is not exhausted through or confined like to a single credit or transaction. Whether the liability of the guarantor like a case extends to there all the transactions contemplated whereas the revocation of the guarantee. But a guarantee is continuing or like not depends on the language of the warranty, the subject-matter and the surrounding state of affairs. An example would be the certification of a company's overdraft by the directors up to a specified limit during a given period, like e.g. date 2nd January to date 31st December.
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