[Name of Financial Institution/Company]
Address: [Full address]
Represented by: [Name of authorized representative]

[Name of Borrower/Client]
Address: [Full address]
Identification/Account Number: [ID Number or Account Number]

Recitals

WHEREAS, the Borrower has applied for a loan or credit facility from the Lender in the amount of [Loan Amount] with a term of [Loan Term];
WHEREAS, the Lender has agreed to extend the loan or credit to the Borrower subject to the terms and conditions outlined in the Loan Agreement, dated [Loan Agreement Date];
WHEREAS, the Borrower has authorized the Lender to collect payments towards the loan via automatic debit from the Borrower's designated bank account.

Terms of Agreement

1. Authorization for Debit
The Borrower hereby authorizes the Lender to deduct the agreed upon loan repayments, including principal and interest, from the Borrower's designated bank account, as specified below:

Bank Name: [Bank Name]
Account Number: [Account Number]
Account Type: [Checking/Savings]
Bank Branch: [Branch Name]
Sort Code/IBAN: [Sort Code or IBAN if applicable]

2. Amount and Frequency of Payments
The Borrower agrees that the loan repayments shall be automatically debited from the Borrower's bank account on the [Day of the Month] each month for the duration of the loan term, or as otherwise specified in the Loan Agreement. The amount to be debited will be [Amount] per month or the equivalent, as determined by the Lender based on the loan schedule.

3. Obligation to Maintain Sufficient Funds
The Borrower agrees to maintain sufficient funds in the designated account to cover the monthly loan payment. In the event of insufficient funds, the Borrower acknowledges that the Lender may charge late fees or penalties as outlined in the Loan Agreement, and the Borrower may also be subject to other legal actions or credit implications as per the terms of the Loan Agreement.

4. Duration and Modification of Debit Guarantee
This Debit Guarantee shall remain in effect for the entire duration of the loan repayment period, or until the loan balance is fully settled. In the event of any changes to the loan amount, repayment schedule, or bank account details, the Borrower agrees to promptly notify the Lender in writing, and the Lender will issue an updated debit instruction accordingly.

5. Early Termination of Debit Guarantee
The Borrower may request termination of the Debit Guarantee by providing written notice to the Lender at least [Number of Days] days in advance. Termination of the debit guarantee will only be processed once the loan balance has been fully paid or other arrangements for loan settlement have been agreed upon.

6. Dispute Resolution
In the event of any disputes arising from the automatic debit process, both parties agree to resolve the matter amicably through negotiation. If a resolution cannot be reached, the matter shall be referred to [Arbitration/Mediation Organization] for formal resolution.

7. Indemnity
The Borrower agrees to indemnify and hold harmless the Lender from any claims, damages, or losses arising from insufficient funds, incorrect payment amounts, or any failure to make the automatic debit as agreed upon in this agreement.

8. Governing Law
This agreement shall be governed by and construed in accordance with the laws of [State/Country]. Any legal action arising from this agreement shall be brought in the courts of [Location].