Guarantor's Declaration definition
Guarantor's Declaration a declaration executed by the Guarantor in favour of the Agent on behalf of the Banks whereby the Guarantor undertakes that (i) all loans granted or to be granted by the Guarantor or associated companies to the Borrower shall, after an Event of Default has occurred, in all respect be subordinated to the Loan until such default is cured or remedied, (ii) it will not merge or consolidate with any other entity without the prior written consent of the Banks (iii) the Guarantor will not pay any dividends or other payments to its shareholders if the Guarantor is in breach of any covenants and (iv) maintain the borrower as a wholly owned subsidiary.