A provision in a settlement agreement requiring payment of a full acknowledged debt upon breach of settlement conditions is not penal where the debtor has acknowledged the debt and the creditor has merely granted an indulgence to pay a lesser sum. However, an obligation to provide a bank guarantee in respect of a lease may, by necessary implication, be dependent on the continuing existence of that lease, such that a valid termination of the lease relieves the debtor of the guarantee obligation.
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