"Corporate Guarantee Template"

What Is a Corporate Guarantee?

A Corporate Guarantee is a legal agreement used when an entity is facing bankruptcy between a borrower, lender, and guarantor, where a corporation (usually an insurance company) takes on the responsibility of ensuring a borrower repays their debt. This guarantee will list how much will be given for a loan and who will be responsible for paying back the amount should the debtor stop making repayments.

Alternate Name:

  • Third-Party Guarantee.

There are two types of corporate guarantees: limited and unlimited. In a limited Corporate Guarantee, the guarantor is liable only up to a certain amount of the debt owed by the borrower. For an unlimited Corporate Guarantee, the guarantor is responsible for the full debt amount owed by the borrower.

There can also be a Cross Guarantee, where two or more companies provide a guarantee to one another's obligations. This often occurs between companies operating under the same group or a parent company and its subsidiaries (for example Disney acting on behalf of Marvel). You can download a Corporate Guarantee template through the link below.

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How to Write a Corporate Guarantee?

To write a Corporate Guarantee Form you will want to include the following in your introductory section:

  1. Borrower's name (labeled "the Borrower") and address.
  2. Lender's name (labeled "the Lender") and address.
  3. Guarantor's name (labeled "the Guarantor") and address.
  4. Date of the loan agreement.
  5. Amount of the loan.
  6. The entity responsible for paying back the loan should the borrower fail to pay back the amount. This includes all remaining principal, interest, and any additional costs (i.e. fines or penalties).

Within your Corporate Guarantee template, you will also want to include a clear description of what the responsibilities entail for the borrower, lender, and guarantor, and that this document shall not be altered or changed in any way once signed. If this is a Cross Corporate Guarantee, you will want to include a statement that the Parent Company agrees to repay the debt of the subsidiary in full.

What Is the Difference Between a Corporate Guarantee and a Personal Guarantee?

The difference between a Corporate Guarantee and a Personal Guarantee is a more firm guarantee of repayment by the borrower and a promise of additional assets being repossessed. In a Personal Guarantee, the borrower is usually an executive or partner of a business that is seeking to repay debts and provides an extra layer of security to the lender that they will receive repayment of the loan.

This form of loan guarantee also ensures that the debt will still be repaid to the lender by the borrower or guarantor should the company file for bankruptcy. Borrowers who have agreed to a Personal Guarantee can also use their own financial assets as collateral or agree to use personal funds to repay the debt should the business run into default.


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Corporate Guarantee
This Corporate Guarantee (hereinafter referred to as the "Guarantee") dated
____________________ between:
____________________ of ________________________ (hereinafter referred
to as the "Guarantor") ​ O N THE FIRST PART
____________________ of ________________________ (hereinafter referred
to as the "Lender") ​ O N THE SECOND PART
____________________ of ________________________ (hereinafter referred
to as the "Debtor") ​ O N THE THIRD PART
IN CONSIDERATION OF good and valuable consideration, and any future credit
that the Lender may extend from time to time to the Debtor, the receipt and
sufficiency of which is hereby acknowledged, the Guarantor guaranteed the prompt,
full and complete performance of any and all existing duties of the Debtor to the
Lender and the payment of any and all indebtedness due to the Lender by the Debtor,
up to a limit of $____________________, under the following terms and conditions:
1. Subject to the above limit, the Guarantor guaranteed that the Debtor will promptly
pay the amount of principal and interest of the debt under the Agreement (hereinafter
referred to as the "Debt") as and when the same will in any manner be or become due,
either according to the terms and conditions provided by the Agreement or upon
acceleration of the payment under the Agreement by reason of a default.
2. The Guarantor agrees not to pledge, hypothecate, mortgage, sell, or otherwise
transfer any of the Guarantor's assets without the prior written consent of the Lender.
3. To the extent permitted by law, the Guarantor waives all defenses, counterclaims, or
offsets that are legally available to the Guarantor with the respect to the payment of
the Debt ot the Debtor.
4. The Lender is hereby authorized at any time, in its sole discretion and without
notice, to take, change, release, or in any way deal with any security securing the Dbt
without in any way impairing the obligation of the Guarantor.
5. The Lender will be under no obligation to collect or to protect any such security of
the Debt, and its neglect or failure to collect or protect the security or the Debt is
excused. Acceptance of the Guarantee is waived.
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Corporate Guarantee
This Corporate Guarantee (hereinafter referred to as the "Guarantee") dated
____________________ between:
____________________ of ________________________ (hereinafter referred
to as the "Guarantor") ​ O N THE FIRST PART
____________________ of ________________________ (hereinafter referred
to as the "Lender") ​ O N THE SECOND PART
____________________ of ________________________ (hereinafter referred
to as the "Debtor") ​ O N THE THIRD PART
IN CONSIDERATION OF good and valuable consideration, and any future credit
that the Lender may extend from time to time to the Debtor, the receipt and
sufficiency of which is hereby acknowledged, the Guarantor guaranteed the prompt,
full and complete performance of any and all existing duties of the Debtor to the
Lender and the payment of any and all indebtedness due to the Lender by the Debtor,
up to a limit of $____________________, under the following terms and conditions:
1. Subject to the above limit, the Guarantor guaranteed that the Debtor will promptly
pay the amount of principal and interest of the debt under the Agreement (hereinafter
referred to as the "Debt") as and when the same will in any manner be or become due,
either according to the terms and conditions provided by the Agreement or upon
acceleration of the payment under the Agreement by reason of a default.
2. The Guarantor agrees not to pledge, hypothecate, mortgage, sell, or otherwise
transfer any of the Guarantor's assets without the prior written consent of the Lender.
3. To the extent permitted by law, the Guarantor waives all defenses, counterclaims, or
offsets that are legally available to the Guarantor with the respect to the payment of
the Debt ot the Debtor.
4. The Lender is hereby authorized at any time, in its sole discretion and without
notice, to take, change, release, or in any way deal with any security securing the Dbt
without in any way impairing the obligation of the Guarantor.
5. The Lender will be under no obligation to collect or to protect any such security of
the Debt, and its neglect or failure to collect or protect the security or the Debt is
excused. Acceptance of the Guarantee is waived.
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6. The Lender may grant extensions of time and other indulgences and otherwise deal
with the Debtor and with other parties and securities as the Lender may see fit without
in any way limiting or lessening the liability of the Guarantor under this Agreement.
7. Any impairment of the security, which the Lender may from time to time hold as
security for the Debt, will in no way operate to discharge the Guarantor in whole or in
part, it being specifically agreed that the Lender is not required to exercise diligence to
enforce its rights against the Debtor.
8. The Lender may release, surrender, exchange, modify, impair, or extend the periods
of duration or the time for performance or payment of any collateral securing the
obligations of the Debtor to the Lender, and may also settle or compromise any claim
of the Lender against the Debtor or against any other person or corporation whose
obligation is held by the Lender as collateral security for any obligation of the Debtor
or the Lender.
9. This Guarantee is for the use and benefit of the Lender, and will also be for the use
and benefit of any subsequent Lender to whom the Lender may assign this Guarantee.
10. The liability of the Guarantor will continue until payment is made of every
obligation of the Debtor now or later incurred in connection with the Debt and until
payment is made of any loss or damage incurred by the Lender with respect to any
matter covered by this Guarantee.
11. The Guarantor further waives all rights, by statute or otherwise, to require the
Lender to institute suit against the Debtor, and to exercise diligence in enforcing this
Guarantee or any other instrument.
12. Any and all present and future debts and liabilities of the Debtor to the Guarantor
are postponed in favor of and subordinated to the full payment and performance of all
present and future debts and obligations of the Debtor to the Lender. Upon any default
by the Debtor under this Agreement, all present and future indebtedness of the Debtor
to the Guarantor is hereby assigned to the Lender and any monies thereafter received
by the Guarantor form the Debtor has been fully paid and satisfied.
13. The Guarantor represents that at the time of the execution and delivery of this
Guarantee nothing exists to impair the effectiveness of the Guarantee.
14. All of the Lender's rights, powers, and remedies available under this Guarantee
and under any other agreement on force now or anytime later between the Lender and
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the Guarantor will be cumulative and not alternative, and will be in addition to all
rights, powers, and remedies given to the Lender by law or in equity.
15. The Lender may, at its option, proceed in the first instance against the Guarantor
to collect the obligation covered by this Guarantee without first proceeding against
any other person, firm, or corporation and without resorting to any property held by
the Lender as collateral security.
16. This Guarantee is made pursuant to the laws of the ____________________.
State
17. Any notice to be given to the Guarantor may be sent by mail, telephone, email, or
otherwise delivered to the address provided below:
_____________________________________________________________________
The Guarantor, Lender, and Debtor agree to the terms and conditions set forth above
as demonstrated by their signatures as follows:
GUARANTOR
LENDER
DEBTOR
_______________________
_______________________
_______________________
Name
Name
Name
_______________________
_______________________
_______________________
Signed
Signed
Signed
_______________________
_______________________
_______________________
Date
Date
Date
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