"Guarantee Agreement Template"

What Is a Personal Guarantee Agreement Form?

A Personal Guarantee Agreement is an official pledge listing a third party (known as the guarantor) who will ensure payment of a debt will be fully repaid to the creditor. With a Guarantee Agreement Form, the guarantor can agree to limited or unlimited liability.

Alternate Name:

  • Guarantee Agreement Form.

A Guarantee Agreement can come in many forms depending on the degree of responsibility the guarantor will have. These include:

  • Absolute Guarantee - the creditor will have no restrictions when it comes to seeking repayment from the guarantor if the borrower fails to make a payment;
  • Conditional Guarantee - all parties must agree to conditions that will need to be met before the guarantor will be held liable for the borrower's repayment. A creditor cannot automatically request payment from the guarantor based solely on default by the borrower.
  • Payment Guarantee - a guarantor will agree to a fixed date for payment obligation if the borrower fails to make a payment.
  • Collection Guarantee - the guarantor assures the creditor that the debt will be paid in full after all efforts have been made to receive payment from the borrower.

You can download a Guarantee Agreement Form template below or create your own using our online form builder.

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How to Make a Personal Guarantee Agreement?

To create your own Personal Guarantee Agreement Form you will want to include the following information:

  1. The date the agreement will be finalized and signed by all parties.
  2. Guarantee and Indemnity section that will discuss:
    • Terms for each party for how the loan will be repaid to the creditor;
    • Agreement by the third party to fulfill the repayment of the debt taken on by the borrower, depending on the type of guarantee;
    • Any allowances of missed or late payments due to unforeseen circumstances on behalf of the borrower (such as loss of employment, serious injury, etc).
  3. Liability of Guarantor:
    • This is the section of the Personal Guarantee template that will discuss in detail the duties the guarantor will need to fulfill should the borrower be unable to repay the debt owed. You will want to include language that lays out situations that would leave the guarantor unable to repay the debt (such as injury, incapacity, or failure of the creditor to hold up their end of the agreement).
  4. The length of time the borrower will have to repay the creditor for the loan amount.
  5. Any alterations or amendments the creditor may wish to make prior to the final signing.
  6. The obligation of the guarantor to provide any information needed relating to their finances when requested.
  7. Confidentiality agreements to maintain the privacy of each party and to not divulge the information in the agreement to outside parties for publishing or any other business matter not pertaining directly to the Personal Guarantee Agreement.
  8. Arbitration instructions and location of where the arbitration would take place.
  9. Applicable Laws pertaining to the agreement.
  10. Final Signature section for the borrower, lender, and guarantor.

Be aware that you will need to adjust the language of the Personal Guarantee Agreement template for employment, real estate, or financial transactions.


Haven't found the template you're looking for? Take a look at these related templates below:

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Guarantee Agreement
This ​ G uarantee Agreement ​ ( hereinafter referred to as the “Agreement”) is entered into
as of _________________ by and between the following:
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Guarantor”); and
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Borrower”); and
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Lender”); and
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Debenture”),
collectively referred to as the “Parties,” all of whom agree to be bound by this
Agreement.
WHEREAS the Lender made available, as a loan, the amount of
$_________________ to the Borrower pursuant to the terms and conditions of a
Subscription Agreement entered into between the Lender and the Borrower and to
which intervened the Guarantors on _________________; any amount will be
disbursed by ____________________ by the issuance of Debentures, a specimen
of which is annexed hereto as ____________________ (the said loans and the
issuance of the said debentures, in an aggregate maximum amount of
$_________________ plus interests, as same may be amended, supplemented or
restated at any time and from time to time, are hereinafter collectively referred to
as the “Debentures” and individually as a “Debenture”);
WHEREAS the Guarantors agree to guarantee the obligations of the Company
under the Debentures for a maximum amount equal to __________% of the
amounts owed by the Company to ____________________ under the Debentures.
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Guarantee Agreement
This ​ G uarantee Agreement ​ ( hereinafter referred to as the “Agreement”) is entered into
as of _________________ by and between the following:
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Guarantor”); and
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Borrower”); and
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Lender”); and
________________________, with a mailing address of​
_ ___________________
__________________________________________________________________
(hereinafter referred to as the “Debenture”),
collectively referred to as the “Parties,” all of whom agree to be bound by this
Agreement.
WHEREAS the Lender made available, as a loan, the amount of
$_________________ to the Borrower pursuant to the terms and conditions of a
Subscription Agreement entered into between the Lender and the Borrower and to
which intervened the Guarantors on _________________; any amount will be
disbursed by ____________________ by the issuance of Debentures, a specimen
of which is annexed hereto as ____________________ (the said loans and the
issuance of the said debentures, in an aggregate maximum amount of
$_________________ plus interests, as same may be amended, supplemented or
restated at any time and from time to time, are hereinafter collectively referred to
as the “Debentures” and individually as a “Debenture”);
WHEREAS the Guarantors agree to guarantee the obligations of the Company
under the Debentures for a maximum amount equal to __________% of the
amounts owed by the Company to ____________________ under the Debentures.
©​ ​ ​ ​ ​ ​ ​ ​ ​ ​
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NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the
sufficiency and receipt of which are hereby acknowledged, the parties hereto have
agreed as follows:
1. Interpretation.
1.1. General Interpretation. Unless there be something in the subject or the context
inconsistent therewith, words importing the singular only shall include the plural and vice
versa, and words importing the masculine gender shall include the feminine gender, and
vice versa.
1.2. Division into Articles. The division of this Agreement into Articles, Sections,
subsections, paragraphs, and subparagraphs and the insertion of titles are for convenience
of reference only and do not affect the meaning or the interpretation of the present
Agreement.
1.3. Preamble. ​ T he preamble to this Agreement shall form an integral part hereof as if at
length recited herein.
2. Guarantee.
2.1. Object of Guarantee. The Guarantor bind and oblige themselves solidarily,
absolutely and unconditionally with the Borrower for the due and punctual performance
of __________% of all of the Borrower's obligations, undertakings and covenants under
each one of the Debenture, expressly renouncing to the benefits of division and
discussion. The Guarantor undertakes to perform such obligations, undertakings, and
covenants upon the occurrence of an Event of Default (as this expression is defined in
each one of the Debenture) under either one of the Debenture, without notice or demand.
2.2. Nature of Guarantors' Obligations. ​ T he Guarantor’s obligations hereunder are
absolute and unconditional, present and continuing, unlimited, constitute a guarantee of
payment and performance and not a guarantee of collection and shall remain in full force
and effect until the earlier of the performance in full of all of the Borrower's obligations,
undertakings and covenants under each one of the Debenture and __________ years
following the execution hereof. The Guarantor hereby acknowledges that this guarantee
is not attached to the performance of duties.
3. General Provisions.
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3.1. Counterparts. ​ T his Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all such separate counterparts shall
together constitute but one and the same instrument.
3.2. Nullity. Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof in
that jurisdiction or affecting the validity or enforceability of such provisions in any other
jurisdiction.
3.3. Notices. ​ E xcept as otherwise specified herein, all notices, requests, demands or other
communications to or upon the respective parties hereto shall be in writing and shall be
deemed to have been duly given or made to the party to which such notice, request,
demand or other communication is required or permitted to be given or made under this
Agreement when delivered to such party ____________________ at its address and
attention set forth with its signature below, or at such other address as any of the parties
hereto may hereafter notify the others in writing. No other method of giving notice is
hereby precluded.
3.4. Entire Agreement. ​ T his Agreement contains the entire agreement between the
parties relating to the subject matter hereof.
4. Acknowledgment. ​ T he Guarantor hereby acknowledges that:
● The essential stipulations of this Agreement were not imposed by the Lender and
were negotiable; and
● The clauses of this Guarantee Agreement and of the Debenture, a copy of which
being annexed hereto as “____________________”, have been expressly brought
to my attention and an adequate explanation of the nature and scope of the clauses
thereof has been given to me.
5. Death of Guarantor. ​ T he Borrower hereby undertakes to advise the Lender of the
death of the Guarantor as soon as it knows of the same. The Borrower shall, within
__________ days provide the Lender with another equally solvent guarantor.
6. Governing Law. The Parties agree that this Agreement shall be governed by the laws
of ______________________.
State
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The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
______________________________
______________________________
Guarantor’s Name
Borrower’s Name
______________________________
______________________________
Guarantor’s Signature
Borrower’s Signature
______________________________
______________________________
Date
Date
______________________________
______________________________
Lender’s Name
Debenture’s Name
______________________________
______________________________
Lender’s Signature
Debenture’s Signature
______________________________
______________________________
Date
Date
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