A guaranty is an undertaking on the part of one person (the guarantor) that is collateral to an obligation of another person (the debtor or obligor), and which binds the guarantor to performance of the obligation in the event of default by the debtor or obligor.
The contract of guaranty may be absolute or it may be conditional. An absolute guaranty is a contract by which the guarantor has promised that if the debtor does not perform the obligation or obligations, the guarantor will perform some act (such as the payment of money) to or for the benefit of the creditor.
A line of credit is an arrangement in which a lender extends a specified amount of credit to borrower for a specified time period.
Keywords: Kansas, Absolute Guaranty of Payment, Consideration, Extension of a Line of Credit Kansas Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit is a legally binding agreement between a guarantor and a lender in the state of Kansas. This type of guaranty is designed to provide the lender with an assurance that the outstanding amount on a line of credit will be fully paid by the guarantor, regardless of the borrower's ability to repay. The guaranty serves as a form of security for the lender, ensuring that they will not suffer any financial loss in the event of default by the borrower. This is especially relevant when the lender decides to extend or increase the existing line of credit for the borrower. There are different types of Kansas Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit, including: 1. Individual Guaranty: This type of guaranty involves a single person acting as the guarantor, providing a personal guarantee for the repayment of the line of credit. 2. Corporate Guaranty: In this case, a corporation acts as the guarantor, assuming the responsibility for the repayment of the line of credit on behalf of the borrower. 3. Joint and Several guaranties: This type of guaranty involves multiple guarantors who are jointly and severally liable for the repayment of the line of credit. This means that each guarantor is responsible for the full amount of the debt in case of default. 4. Limited Guaranty: A limited guaranty places certain limitations on the guarantor's liability, typically specifying a maximum amount for which they are responsible. This type of guaranty protects the guarantor from being held liable for amounts exceeding the specified limit. It is important to note that Kansas Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit is a legally enforceable contract, and any breach of its terms may result in legal consequences for the guarantor. Therefore, it is advisable for both the lender and the guarantor to carefully review the terms and conditions of the guaranty before entering into the agreement.
