Jacob Shaw - Cobsultant at RTO Advisors Jacob Shaw - Cobsultant at RTO Advisors

What is an RTO deed of guarantee?

Jacob Shaw on June 03, 2019

During the process of initial registration you will be required to complete a financial viability risk assessment (FVRA). You will be asked if there is any further access to funding that the business may have, including bank loans, Director loans, capital injection and/or personal guarantees. It is typical to state that the directors have additional funds available if necessary. This allows the directors to demonstrate their commitment to the success of the RTO while alleviating some risk in ASQA's eyes. After making this commitment, the next step is to prepare a deed of guarantee that will be submitted with the FVRA. While fairly straightforward, it is an important document that must be prepared properly. A standard structure is as follows:

  1. Interpretation
  2. Guarantee
  3. Continuing guarantee
  4. Indemnity
  5. Liability of the Guarantor
  6. No set-off or deduction
  7. Amendments
  8. Severance
  9. Warranty
  10. Notices
  11. Governing law
  12. Jurisdiction
  13. Execution

We have developed a template that covers all requirements. The template is part of our initial RTO registration packages. As always, feel free to contact us for a free initial consultation if you have any questions.

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