GUARANTOR AGREEMENT
for Cycle to Work Scheme
IMPORTANT NOTICE
This guarantor agreement creates a binding legal contract. If you do not fully understand the nature of the agreement, then it is recommended that
you take independent legal advice before signing.
General Notes
•
This agreement is for use with the Cycle-to-Work Scheme Loan Agreement in accordance with the Department for Transport’s scheme
implementation guidance October 2009. This Loan Agreement is a legal document and should not be used without knowledge of the
terms and conditions of loan via salary sacrifice.
•
It is essential that a copy of the proposed Loan Agreement and terms and conditions is attached to the Guarantor Agreement and that the
Guarantor is given adequate opportunity to read both documents before signing.
•
If the guarantor is not able to be present, in person, to sign the guarantee it is recommended that the guarantee is signed at least
fourteen days before the salary sacrifice is due to start.
•
The Loan Agreement and Guarantor Form should be signed by the relevant parties and returned together to Cyclescheme Ltd, PO BOX
3809, Bath, BA1 1WX.
Employee name: «First_name» «Last_name»
Guarantor name:
The Employer/Owner (name): «Employer»
Employer Address: «Employer_address_1», «Employer_address_2»,
Guarantor Address:
«Employer_city», «Employer_county»
Postcode: «Employer_postcode»
Postcode:
Equipment: Bicycle and related allowable safety equipment (the ‘Equipment’)
Salary sacrifice commencement date: [insert commencement date]
1. The Employer agrees to loan the relevant Equipment to the Employee named in the attached Loan Agreement in accordance with the associated
Loan Agreement terms & conditions. In consideration of this, the Guarantor agrees to act for the Employee should they fail, for any reason, to
meet the financial commitments arising from the Loan Agreement entered into in respect of the Equipment.
2. This Guarantor Agreement refers to the loan period being undertaken and any extension or renewal of that loan period. All references to the
Employer herein shall be deemed to include the Employer's Agent or any person authorised to act on the Employer's behalf.
3. The Guarantor undertakes to pay to the Employer from the date of this Agreement from time to time the loan payments within 14 days of
receipt of a written demand from the Employer or his Agent addressed to the Guarantor if the Employee, following demand has not paid the
amount outstanding when it was due under the Loan Agreement.
4. The Guarantor shall pay and make good to the Employer on demand all reasonable losses and expenses of the Employer incurred as a result
of default by the Employee in the performance or observance of the Employee’s covenants under the Loan Agreement. Any failure of the
Employer in demanding or collecting the loan payments when it falls due, and any time to pay which may be given to the Employee by the
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Employer shall not release the Guarantor or in any way affect the liability of the Guarantor under this agreement. Should the Guarantor die
during the currency of this agreement, the Guarantor's estate will be liable as surety and co-principal debtor.
5. If the loan period is for a fixed term, then this guarantee applies for the whole of the term and is not revocable during that term.
6. If the Employee leaves their employment prior to the end of the loan period they will be required to pay a termination fee equal to the remaining
balance of loan payments as described in Section 9.0 ‘Leaving your employment’ in the attached terms and conditions. If it is not possible for
the Employer to recover the balance of loan payments from any remaining net salary payments the Employee will be required to pay the
termination fee within 14 days of their employment ceasing. If the Employer is not in receipt of the termination fee within the 14 day period a
written demand for the balance will be sent to the Guarantor, payable within 14 days of receipt.
7. It is agreed that there shall be no right to cancel this agreement once the loan agreement has been signed and the Consumer Protection
(Distance Selling) Regulations 2000 shall not apply in this case.
SIGNED by GUARANTOR:
I understand the terms & conditions contained in the Loan Agreement terms & conditions, and agree to
the terms & conditions of the associated Guarantor Form.
I confirm that I am over 18.
[Guarantor signature]
DATE: [date of signature]
Relationship to the ‘Employee’:_____________________________________________________________________
RETURN INSTRUCTIONS
Once completed please take a copy of the agreement for your records and return the original signed Loan &
Guarantor Form to the following address:
Cyclescheme Ltd
PO Box 3809
Bath
BA1 1WX
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