OTHER NAMESGuaranty Agreement FormPersonal Guarantee Agreement
What is a Guaranty Agreement?
If you need to guarantee someone's credit worthiness, you can use our personal Guaranty form. Whether you want a bank to loan money to a family member, or hold off on collections for his or her late phone bill, being a guarantor comes with the responsibility that you will repay their debt if they do not. Using a Guaranty Agreement can help protect you by specifying the terms of this arrangement.
A Guaranty Agreement is a contract that outlines your role in the process. It supports the obligation of a borrower to a lender; in the primary contract the borrower agrees to provide the lender with something of value, like money or goods and services. Completing a Personal Guaranty Form you, the "guarantor," agrees to fulfill the promise of the borrower if he or she does not come through with their obligation. A Guaranty Agreement can be used to guarantee the repayment of a loan, the repayment of additional credit on an already past-due loan, the payments due under a lease, or the payment of future balances from credit card purchases. With a Guaranty Agreement, the guaranty can be "absolute" ( you will assume the obligation if the borrower cannot, for any reason) or "conditional" (your liability as the "guarantor" is conditional on a particular event in addition to the borrower's default), and can be restricted to a specific transaction or amount, or may cover any obligations over an indefinite period of time.
When to use a Guaranty Agreement:
You want to help someone secure a loan.
Someone is facing collections, and you're up for helping them negotiate revised or new terms.
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Sample Guaranty Agreement
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. OBLIGATIONS. This Guaranty is given by the Guarantor to induce the Creditor to or to forebear in the exercise of the Creditor's rights against the Debtor, absolutely and unconditionally whether now existing or hereafter incurred (it being understood and agreed that this Guaranty is a continuing one, except as such duration is specifically limited elsewhere in this Guaranty), whether voluntary or involuntary and however arising, whether secured or unsecured, absolute or contingent, liquidated or unliquidated, and regardless of whether the Debtor may be liable individually or jointly with others, regardless of whether recovery upon any such obligation may be or hereafter become barred or otherwise unenforceable, (a copy of the proposed contract is attached as Exhibit A)absolutely and unconditionally
. DURATION. until until days after
. NOTICE OF DEFAULT. The Creditor be required to notify the Guarantor of a default by the Debtor in the Debtor's commitments to the Creditor before proceeding against the Guarantor under this Guaranty.
The Creditor shall have no duty to notify the Guarantor of any further advances made to the Debtor. The Creditor shall not extend additional credit to the Debtor without prior written consent from the Guarantor, and a violation of this section will cause this Guaranty to be null and void, and the Guarantor's liability under this Guaranty will be completely discharged.
. CREDITOR PROVISIONS. Until all obligations of the Debtor to the Creditor have been satisfied in full, the Guarantor waives all rights of subrogation to any collateral and remedies of the Creditor against the Debtor, and other persons or entities. Any indebtedness of the Debtor now or hereafter owed to the Guarantor is hereby subrogated to the indebtedness of the Debtor to the Creditor, and such indebtedness of the Debtor to the Guarantor, if the Creditor so requests, shall be collected, enforced, and received by the Guarantor as trustee for the Creditor and be paid over to the Creditor on account of the indebtedness of the Debtor to the Creditor, but without reducing or affecting in any manner the liability of the Guarantor under the provisions of this Guaranty.
The Guarantor agrees that, without notice to the Guarantor, the Creditor may (a) change the terms of payment or performance by the Debtor to the Creditor, and/or (b) release any security. In either event, the Guarantor shall not be released from any responsibility on the obligations of the Debtor. This Guaranty shall become null and void if the Creditor takes any action to make, alter or renew any contracts or agreements between the Creditor and the Debtor, unless the Guarantor has provided prior written consent to the Creditor.
The Guarantor agrees to provide the Creditor with information concerning the Guarantor's financial condition upon reasonable request. The Creditor has no duty to advise the Guarantor of the Debtor's financial condition.
This Guaranty is unsecured.This Guaranty is secured by:
- Pledge Agreement dated .
- Security Agreement dated .
- Mortgage dated .
- Collateral Assignment dated .
. ENTIRE AGREEMENT. This Guaranty contains the entire agreement of the parties with respect to the subject matter of this Guaranty and there are no other promises or conditions in any other agreement, whether oral or written. This Guaranty supersedes any prior written or oral agreements between the parties with respect to the subject matter of this Guaranty.
. AMENDMENT. This Guaranty may be modified or amended, if the amendment is made in writing and is signed by both parties.
. SEVERABILITY. If any provision of this Guaranty shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Guaranty is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Guaranty shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Guaranty.
. APPLICABLE LAW. This Guaranty shall be governed by the laws of the State of .
. RECEIPT. The Guarantor acknowledges receipt of a copy of this Guaranty.
. SIGNATURES. This Guaranty shall be signed for the Guarantor by .
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