The Court of Appeal highlighted in Westpac New Zealand Limited v Jaswant Singh Chahil [2012] NZCA 123 that when signing a deed of guarantee and indemnity in a personal capacity and as a trustee, it is imperative to have the obligations of both roles thoroughly explained in the event of default. In this instance, C accepted and signed a wholesale term loan facility which required an interlocking deed of guarantee and indemnity to be signed by C in his personal capacity and as trustee of the C’s Family Trusts. In particular, clause 34 of the facility specifically detailed that the secured parties rights against the guarantor will only be limited to the assets of the trust in the event of default if the guarantor is an independent trustee. The High Court held that the balance of clause 34 does not operate to limit C’s liability and afford him a defence where W sues separately on his personal guarantee, unrelated to his status as trustee. Therefore, it follows that where a person signs a guarantee, both as an independent trustee and personally, a provision such as clause 34 does not apply to limit the party’s liability in both capacities in the event of default.