PERSONAL GUARANTEE AGREEMENT
THIS AGREEMENT is made on [Date],
BETWEEN:
[Creditor Name], of [Creditor Address] (“Creditor”);
AND
[Debtor Name], of [Debtor Address] (“Debtor”);
AND
[Guarantor Name], of [Guarantor Address] (“Guarantor”).
RECITALS
WHEREAS:
- The Creditor and the Debtor have entered, or intend to enter, into a financial arrangement or agreement described as follows: [Description of Agreement or Obligation] (the “Underlying Agreement”);
- The Creditor requires additional assurance for the performance and payment obligations of the Debtor under the Underlying Agreement;
- The Guarantor agrees to personally guarantee the obligations of the Debtor to the Creditor, subject to the terms of this Agreement.
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the parties agree as follows:
1. GUARANTEE
1.1 The Guarantor unconditionally and irrevocably guarantees to the Creditor the due and punctual payment and performance by the Debtor of all present and future obligations, debts, and liabilities of the Debtor to the Creditor under the Underlying Agreement, including but not limited to [specify, e.g., loan amounts, interest, fees, costs, and expenses] (the “Guaranteed Obligations”).
1.2 If the Debtor fails to pay or perform any of the Guaranteed Obligations when due, the Guarantor shall, upon written demand from the Creditor, immediately pay or perform such obligations.
2. NATURE OF GUARANTEE
2.1 This is a continuing guarantee and shall remain in effect until all Guaranteed Obligations have been fully paid, performed, and discharged.
2.2 The liability of the Guarantor is joint and several with the Debtor and any other guarantor, if applicable.
2.3 The Creditor may proceed against the Guarantor without first seeking to enforce remedies against the Debtor or any other person.
3. WAIVER OF DEFENSES
3.1 The Guarantor waives all notices, demands, presentments, and protests regarding the Guaranteed Obligations.
3.2 The Guarantor’s obligations shall not be affected by:
- Any extension, renewal, or modification of the Underlying Agreement;
- Any release or compromise with the Debtor or any other guarantor;
- Any failure or delay by the Creditor to enforce its rights against the Debtor or any third party.
4. LIMITATION OF GUARANTEE
4.1 The maximum liability of the Guarantor under this Agreement is [Maximum Amount, or state “unlimited” if no cap applies]: [Specify Amount or “Unlimited”].
4.2 This Guarantee applies only to the obligations arising under the Underlying Agreement dated [Date of Underlying Agreement] between the Creditor and the Debtor.
5. TERMINATION
5.1 The Guarantor may terminate this Agreement by giving written notice to the Creditor at [Creditor Address], provided that such termination shall not affect any Guaranteed Obligations existing prior to the date the Creditor receives such notice.
6. REPRESENTATIONS AND WARRANTIES
6.1 The Guarantor represents and warrants that:
- They have the legal capacity and authority to enter into this Agreement;
- This Agreement constitutes a valid and binding obligation enforceable against the Guarantor;
- Entering into this Agreement does not violate any other agreement or obligation.
7. NOTICES
7.1 Any notice or demand under this Agreement must be in writing and delivered to the parties at their respective addresses stated above (or such other address as may be notified in writing).
8. GOVERNING LAW
8.1 This Agreement shall be governed by and construed in accordance with the laws of [Governing Law State/Country].
9. GENERAL PROVISIONS
9.1 Entire Agreement: This Agreement constitutes the entire agreement between the parties regarding the subject matter and supersedes all prior agreements or understandings.
9.2 Amendment: Any amendment or modification to this Agreement must be in writing and signed by all parties.
9.3 Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
9.4 Assignment: The Guarantor may not assign or transfer any rights or obligations under this Agreement without the prior written consent of the Creditor.
10. DISCLAIMER
This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.
SIGNATURES
IN WITNESS WHEREOF, the parties have executed this Personal Guarantee Agreement as of the date first written above.
<br>CREDITOR:
Name: _______________________________
Signature: __________________________
Date: ______________________________
DEBTOR:
Name: _______________________________
Signature: __________________________
Date: ______________________________
GUARANTOR:
Name: _______________________________
Signature: __________________________
Date: ______________________________
