This Personal Guarantee Agreement (the "Guarantee") is entered into as of (Date), by and between [Guarantor.FirstName] [Guarantor.LastName] ("Guarantor") and [Lender.FirstName] [Lender.LastName] ("Lender"), in connection with a loan made to [Borrower.FirstName] [Borrower.LastName] ("Borrower") on [Document.CreatedDate] .
The Guarantor agrees to personally guarantee the repayment of (Loan Amount) (the "Guaranteed Money"), which was borrowed by the Borrower under the terms and conditions of the original agreement.
Guarantor's liability shall be as follows:
A. Up to a Specified Limit: The Guarantor's liability is limited to the amount of (Specified Limit). Any amounts exceeding this limit will not be the responsibility of the Guarantor.
B. The Entire Agreement: The Guarantor is fully liable for the entire amount of the Guaranteed Money, including principal, interest, and late fees, without any maximum limit.
The Guarantor understands and acknowledges that they are personally liable for the terms of this Guarantee and the Original Agreement. This means that any personal assets of Guarantor may be used for repayment by the Lender.
The Guarantor agrees to promptly pay the full amount of the principal, interest, and late fees due under the Original Agreement, in addition to any other liabilities, within 30 days of the Borrower's default.
In the event the Borrower defaults on the Original Agreement, their liability for the debts paid by Guarantor will not be waived. Borrower remains liable for any monies paid by Guarantor to Lender. Borrower acknowledges that the terms of the Original Agreement are being transferred to Guarantor, giving Guarantor the right to enforce all commitments made by Borrower.
Any disputes arising from this Guarantee shall be brought before a court of Lender's preference. In the event that a preferred court cannot be agreed upon, the court governing the Lender's mailing address shall have jurisdiction.
If any section of this Guarantee or its application is found to be invalid or unenforceable, it shall not affect the remaining provisions, which shall be enforced to the maximum extent permitted by law.
This Guarantee constitutes the Entire Agreement between the Parties, including any attachments or addendums. It supersedes all prior discussions, understandings, and oral agreements. The Parties agree to be bound by the terms and conditions set forth herein until the Guaranteed Money is fully repaid.
IN WITNESS WHEREOF, the undersigned have executed this Personal Guarantee on the date first written above.
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A guaranty agreement, also called a guarantee agreement, is a legally binding document which states that a third party (guarantor) will pay the remaining debt of the borrower, if they fail to do so. It’s mainly made during financial or real estate transactions.
Yes, a personal guarantee is legally binding. But, they can be unenforceable if the limitation period expires (which can be be between six years and twelve years). The guarantee may also not be enforceable if the guarantor was taken advantage of, was forced, or was bribed into signing the document.
Begin your personal guarantee agreement by writing down names of both parties. Next, add other details like the principle, interest, fees, and terms and conditions (continuing guarantee, asset allocation, rights, representation, etc.) End the agreement with an acceptance form and signatures.
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