Date of Loan Agreement differ with Guarantee Deed its effect

it will not affect the loan agreement.  A guarantee document can be executed even after grant of loan.  However, a guarantee cannot precede the date of loan.

Thanks, for instance deed of Hypothecation and Guarantee agreement was 9th October 2010 but loan agreement 12th October 2010, is it valid?

I beg to differ from Mr.Rajeev's view point to the query posed by Assumi saheb.. The issue that Guarantee is an express agreement which comes into play only when the liability is quantified.  If the loan is granted at a later date and linked to a guarantee which came into existence prior to disbursement of loan it is null and void abinitio.  In this case, hypothecation deed has no legal validity as the articles or the movable properties that are attached to the loan are not created from the loan proceeds.  Hence, I conclude that Hypothecation agreement and Guarantee document must be executed on or after the date of loan agreement

According to my understanding of law, so long as there is cross reference of the guarantee agreement and hypothecation agreement to the main loan agreement, and the loan was disbursed subsequent to the guarantee agreement, the dates should not matter.

I agree with Mr. Parthasarathi Loganathan. The loan is granted at a later period so it is difficult to link the prior documents to this loan unless there is a averment in the said documents that the guarantee and the hypothecation agreements are executed for the purpose of the loan to be sanctioned to the borrower.

I agree with the view of Mr. Parthasarathi Loganathan. The guarantee taken prior to sanction and disbursment of loan is totally null and void ab-initio and cannot be enforsed under the law.

Dear Mr. Sachin,

Any lender would like to have the guarantee before the sanction of the loan.  What is the guarantee that any one would give guarantee after the disbursement of the loan?  Normally, Application for Loan, Guarantee's Agreement etc., will precedethe actual sanctioning and disbursement of loan.  Just because the guarantee is taken prior to sanction and disbursement of loan would not render the guarantee null and void.  At best if the loan is neither sanctioned, or after sanctioning was not disbursed the lender cannot make any claim either on the person for whom the loan was sanctioned or on the guarantor. 

I do not think you have any legal basis for saying what you have said.  If you have any basis, please indicate for the benefit of all, including me.

I don't agree with Mr. Ramachandran. No lender will disburse the loan before getting all the relevant documents executed by both the borrower and the guarantor. Likewise no guarantor will execute a blank document without knowing the loan amounts. Further the lender will first sanction the loan, then before disbursing of the amounts to the borrower, will get the guarantee document signed by the guarantor. So the question that "What is the guarantee that any one would give guarantee after the disbursement of the loan?" does not arise at all. If the guarantor is not executing the guarantee document then no disbursement will be done.  

The Hypothecation and Guanrantee will be with specified amount at any  one time or time to time ! The Guarantee for the present or future liability of Sri ---------------- to the extent of Rs;----------------- an the hypothecation of the goods now present and will be available  with borrower  or to be created with loan proceeds - the Facts of the case to be considered in each case . I agree with Mr Ramachandran