Free Personal/Corporate Guarantee

Answer a few simple questions Print and download instantly It takes just 5 minutes

Create Your Free Personal/Corporate Guarantee

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Personal/Corporate Guarantee

QGGuaranteeInformation






Your Personal/Corporate Guarantee

Update Preview
This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Personal/Corporate Guarantee Page of
Page of

PERSONAL GUARANTEE

THIS GUARANTEE (the "Guarantee") dated this ________ day of ________________, ________

BETWEEN:

_________________________ of _________________________________________________
(the "Guarantor")

OF THE FIRST PART

- AND -

_________________________ of _________________________________________________
(the "Lender")

OF THE SECOND PART

- AND -

_________________________ of _________________________________________________
(the "Debtor")

OF 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 personally guarantees the prompt, full and complete performance of any and all existing duties and obligations 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 terms of certain debt agreements (the "Agreement"), and the following terms and conditions:

  1. Subject to the above limit, the Guarantor guarantees that the Debtor will promptly pay the full amount of principal and interest of the debt under the Agreement (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 respect to the payment of the Debt of 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 Debt 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 or the Debt, and its neglect or failure to collect or protect the security or the Debt is excused. Acceptance of the Guarantee is waived.
  6. The Lender may grant extensions of time or 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.

Last Updated October 18, 2023

Personal/Corporate Guarantee

Alternate Names:

A Personal/Corporate Guarantee is also known as a:

  • Guarantee
  • Guaranty
  • Guaranteed Loan
  • Third-Party Guarantee

What is a guarantee?

A guarantee (sometimes written as guaranty) is a contract where a guarantor agrees to take on the responsibilities or payments of a debt if a debtor defaults on their loan.

A guarantee benefits both the lender and the debtor. The benefit to the lender is that their loan is secure; it's assured by the guarantor that the money will be paid back. The benefit to the debtor is that they are eligible for a loan that they might not have otherwise been able to receive without the assurance of the guarantor. This is often the case for debtors who have low credit scores.

Who are the parties in a guarantee?

The parties in guarantees refer to the people or entities that have to fulfill obligations in the agreement. In many cases, the obligation is paying back loaned money.

The parties in a personal or corporate guarantee are:

  • The lender: the person to whom an obligation is owed (like the payment of money)
  • The debtor: the person who has to perform the obligation (pay back the lender)
  • The guarantor: the person who agrees to perform the obligation (take over the loan payments) if the person who is supposed to do so (the debtor) fails to perform

What is the difference between a corporate and personal guarantor?

The difference between corporate and personal guarantors is quite simple: a personal guarantor is an individual who agrees to take on the obligations of a debt for a debtor, whereas a corporate guarantor is a corporation that takes on payment responsibilities.

What is a limited guarantee?

In this particular instance, a limited guarantee is a type of guarantee where the guarantor is only obligated to repay a specific amount of the loan for the debtor. In such circumstances, the amount must be clearly stated in the guarantee document.

This type of guarantee is sometimes seen in mortgage agreements where, instead of leveraging their entire property as security, the guarantor is only liable for a portion of the repayment as outlined in the guarantor loan agreement.

What information needs to be in a guarantee?

A personal/corporate guarantee needs:

  • The debtor's name
  • The guarantor's information (name, contact info, etc. of the individual or corporation)
  • The lender/creditor's information (name and address)
  • A statement of any limits to the guarantee should they exist, i.e. a maximum amount that the guarantor is required to pay
  • A witness's signature (any individual not involved in the guarantee, usually a notary public)

Related Documents:

  • Loan Agreement: a document that sets out terms and obligations for a loan between two parties
  • Promissory Note: a form that acts as an enforceable promise to a lender to be repaid by a debtor
  • Shareholder Loan Agreement: a contract used to document when a corporation borrows money from a shareholder
Thumbnail of sample of Personal/Corporate Guarantee document

Sample

Personal/Corporate Guarantee

Personalize your Personal/Corporate Guarantee document.

Print and download in minutes.

Create your free Personal/Corporate Guarantee in 5-10 minutes or less
This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Loading ...
Loading ...

Note: Your initial answers are saved automatically when you preview your document.
This screen can be used to save additional copies of your answers.