Free Guaranty Agreement Template

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Guarantee Agreement

 

This Guaranty Agreement, hereinafter referred to as the "Guaranty" is made effective as of by and between the following parties: __________(the "Guarantor") having a primary address as follows: ________; and ___________(the "Debtor") having a primary address as follows: _________; and _________(the "Creditor") having a primary address as follows: _________. The Guaranty is being made by the Guarantor to the Creditor for the benefit of the Debtor.

 

  1. Guarantees. In consideration of the Creditor's extension of credit to the Debtor and the promises and covenants contained herein, as well as other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the Guarantor guarantees, in a limited capacity, the certain and prompt payment of all monies owing to the Creditor from the Debtor, whether such payments currently exist or will be incurred in the future (as this Guaranty is specifically agreed to be a continuing Guaranty between the parties, subject to the duration specification described elsewhere in this agreement), whether such debt is voluntary or involuntary and however such debt may arise, under the terms and conditions herein. The Guarantor further acknowledges that the Creditor will be relying on this Guaranty for the purposes of extending credit to the Debtor. This Guaranty is made for the benefit of Creditor.
  2. Obligations and Limitation. The amount guaranteed by the Guarantor is limited to the following: $________. Such amount shall be exclusive of any fees, costs, or expenses which the Creditor may incur to collect on the guaranteed amount.
  3. Duration. This is a continuing Guarantee which may not be revoked by the Guarantor. The Guaranty shall continue until all obligations are paid back to the Creditor.

 

 

  1. No Merger or Waiver. No merger or consolidation of the Venture with or into any other corporation or entity and no sale, lease or other transfer of all or substantially all of the assets of the Venture to any other corporation or entity shall release Guarantor from any of its obligations hereunder.

 

  1. Successors and Assigns. This Guarantee Agreement and the rights and obligations hereunder shall be binding upon and inure to the benefit of the successors and assigns of the parties.

 

  1. Severability. If any provision of this Guarantee Agreement is held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

  1. Governing Law. This Guarantee Agreement shall be construed and enforced in accordance with the laws of the State of [State].

 

  1. Counterparts. This Guarantee Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

  1. Additional Credit. Creditor shall be required to notify Guarantor in the event that any additional extensions of credit are made to the Debtor. Guarantor's liability shall continue to be for the limited amount guaranteed, unless the Guarantor otherwise authorizes in a signed writing.

 

  1. Default. In the event of Debtor's default, Creditor shall be required to notify Guarantor before proceeding against Guarantor for the limited amount guaranteed.

 

  1. Creditor Terms. Creditor is obligated to pursue Debtor for any claim on the debt prior to proceeding against Guarantor. Creditor may not bring suit against the Guarantor in the first instance. Guarantor waives any notice requirement of Creditor's acceptance of this Guaranty. Any of Debtor's debts to Guarantor will be subrogated to Debtor's debts to Creditor, such that even if Debtor pays Guarantor on any debt, such payment shall be considered held in trust for Creditor. Guarantor waives all claims or defenses which may be available to Guarantor regarding Debtor's debt. This Guaranty may be one of several guarantees regarding Debtor's liability to Creditor, but Creditor may modify or release any other guarantee with or without notice to Guarantor. Guarantor's liability shall not change.

 

  1. Alterations and Modifications. Creditor may change the terms of repayment at any time. Creditor is not under an obligation to inform the Guarantor. Guarantor's obligations shall continue to be as listed explicitly herein.

 

  1. Guarantor’s Finances and Assets. Creditor may make reasonable requests of Guarantor's financial information and Guarantor is obligated to provide such information Guarantor shall not transfer any of Guarantor's assets without prior written consent of the Creditor.

 

  1. Security. This Guaranty is secured by the following: _________

 

  1. Language. All communications made or notices given pursuant to this Agreement shall be in the English language.

 

  1. Amendment. This Agreement may only be amended in writing signed by both Parties.

 

  1. Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes any prior or contemporaneous understandings, whether written or oral.

 

  1. Notices. Any notices required under this Guaranty may be made electronically to the email address the parties may, from time to time, inform each other of

 

  1. Headings. Headings to this Agreement are for convenience only and shall not be construed to limit or otherwise affect the terms of this Agreement.

 

Guarantor:

Signature:

Typed or Printed Name:

Title:

Date:

 

Debtor:

Signature:

Typed or Printed Name:

Title:

Date:

 

Creditor:

Signature:

Typed or Printed Name:

Title:

Date: