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Guaranty Agreement

This Guaranty Agreement template is used when a third party (the Guarantor) agrees to be responsible for the debt or obligations of another party (the Debtor) to a Lender. It provides a legal framework for ensuring repayment.

Updated 15d ago
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Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}} | Email: {{email}}

Website: {{website}}

GUARANTY AGREEMENT

This Guaranty Agreement ('Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}}, by and between:

1. {{Guarantor_company_name}} of {{Guarantor_company_address}} (hereinafter referred to as the 'Guarantor')

AND

2. {{Lender_company_name}} of {{Lender_company_address}} (hereinafter referred to as the 'Lender')

WHEREAS, the Lender has agreed to provide a loan facility to {{Debtor_company_name}} of {{Debtor_company_address}} (hereinafter referred to as the 'Debtor') subject to the Guarantor guaranteeing the Debtor's obligations to the Lender.

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, the parties agree as follows:

1. GUARANTY

The Guarantor hereby unconditionally and irrevocably guarantees to the Lender the due and punctual payment and performance of all present and future obligations, liabilities, and indebtedness of the Debtor to the Lender (hereinafter collectively referred to as 'Obligations'), including, but not limited to, principal, interest, fees, costs, and expenses, arising from or in connection with the loan agreement dated {{loan_agreement_date}} between the Debtor and the Lender (the 'Loan Agreement').

This Guaranty is a continuing guaranty and shall remain in full force and effect until all Obligations are fully and finally satisfied.

2. NATURE OF GUARANTY

This Guaranty is a primary and not a secondary obligation. The Guarantor waives any right to require the Lender to proceed against the Debtor or any other person, or to exhaust any other remedies, or to apply any security it may hold, before proceeding against the Guarantor.

3. WAIVERS BY GUARANTOR

The Guarantor hereby waives notice of acceptance of this Guaranty and any and all notices of the creation, renewal, extension, or accrual of any of the Obligations, and notice of any default or non-payment of any of the Obligations.

The Guarantor waives diligence, presentment, protest, demand for payment, notice of dishonor or non-payment, notice of intent to accelerate, notice of acceleration, and any other notices or demands whatsoever.

4. REPRESENTATIONS AND WARRANTIES OF GUARANTOR

The Guarantor represents and warrants to the Lender that:

(a) It has the full power and authority to enter into this Agreement and perform its obligations hereunder.

(b) This Agreement constitutes a legal, valid, and binding obligation of the Guarantor, enforceable against it in accordance with its terms.

(c) The execution and delivery of this Agreement will not violate any law, agreement, or instrument to which the Guarantor is a party or by which it is bound.

5. INDEMNITY

The Guarantor agrees to indemnify and hold harmless the Lender from and against any and all losses, damages, costs, and expenses (including reasonable attorneys' fees) incurred by the Lender as a result of any breach of this Agreement by the Guarantor or in enforcing any of the Lender's rights hereunder.

6. GOVERNING LAW AND JURISDICTION

This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

Any dispute arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts of {{country}}.

7. SEVERABILITY

If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be severed, and the remaining provisions shall remain in full force and effect.

8. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

SIGNATURES

IN WITNESS WHEREOF, the parties have executed this Guaranty Agreement on the date first written above.

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{{Guarantor_company_name}}

Name: {{Guarantor_authorized_signatory_name}}

Title: {{Guarantor_authorized_signatory_title}}

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{{Lender_company_name}}

Name: {{Lender_authorized_signatory_name}}

Title: {{Lender_authorized_signatory_title}}

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