A personal guarantee contract with a lender is a legally binding agreement where an individual (the guarantor) agrees to personally guarantee the repayment of a loan or credit facility, in case the borrower (usually a company or organization) fails to repay the debt. This contract acts as a form of security for the lender, providing reassurance that the debt will be paid even if the borrower defaults. The personal guarantee contract outlines the specific terms and conditions of the agreement, including the amount of the loan, the repayment schedule, and the obligations of the guarantor. It also covers the consequences of default, such as the guarantor becoming personally liable for the outstanding debt, including interest and any associated fees. There are various types of personal guarantee contracts that can be established between a lender and a guarantor, depending on the circumstances. These may include: 1. Unlimited Personal Guarantee: This type of guarantee holds the guarantor liable for the entire amount of the loan, regardless of its size or the borrower's ability to repay. The guarantor's personal assets, such as property or savings, may be used to recover the outstanding debt. 2. Limited Personal Guarantee: In this case, the guarantor's liability is limited to a specific amount or percentage of the loan. Once this threshold is reached, the guarantor is no longer responsible for further repayments. 3. Joint and Several guarantees: This type of guarantee is commonly used when multiple individuals, such as business partners or directors, agree to be jointly and severally liable for the loan. This means that each guarantor is individually responsible for the entire debt, and the lender has the option to pursue any or all of them for repayment. 4. Conditional Personal Guarantee: This type of guarantee is often used as an additional security measure, where the guarantor's liability only comes into effect if certain conditions are not met. For example, the guarantor may be required to repay the loan if the borrower's company goes bankrupt or breaches specific terms of the loan agreement. It is crucial for both the lender and the guarantor to carefully review and understand the terms of the personal guarantee contract before signing. Seeking legal advice is highly recommended ensuring that the obligations and potential risks involved are fully understood.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.Contrato Arrendamiento - Personal Guaranty - Guarantee of Contract for the Lease and Purchase of Real Estate
Description Contrato Arrendamiento Imprimir
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