A guarantee given to a bank by a company contains the following clause: "This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the Borrower under the Facility Agreement, regardless of any intermediate payment or discharge in whole or in part ". You do not need the definitions of 'Borrower' and 'Facility Agreement' to answer this question.

Which ONE of the following statements is CORRECT?

A This clause is aimed at ensuring that the guarantee will survive any variation of the guaranteed obligations.

B This clause is primarily aimed at preventing the application of Clayton's case.

C This clause is aimed at preventing the guarantor enforcing its common law rights until the bank has been repaid in full.

D This clause is aimed at ensuring that the bank can apply monies received from the borrower as it thinks fit using suspense accounts if necessary.