A guaranty is a contract under which one person agrees to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so. A guaranty of the payment of a debt is different from a guaranty of the collection of the debt. A guaranty of payment is absolute while a guaranty of collection is conditional.
The New Hampshire Guaranty of Collection of Promissory Note is a legal document that provides security for the collection of a promissory note in the state of New Hampshire. This agreement involves two parties, namely the promise (debtor) and the guarantor. A promissory note is a document that outlines a promise from the debtor to repay a specific amount of money to the creditor within a specified timeframe. In this case, the guarantor acts as a third party who guarantees the collection of the promissory note in case of default or non-payment by the debtor. There are a few different types of New Hampshire Guaranty of Collection of Promissory Note, which include: 1. Absolute Guaranty of Collection: This type of guaranty holds the guarantor fully responsible for the collection of the promissory note. In case the debtor defaults, the creditor can directly proceed against the guarantor to collect the amount owed. 2. Conditional Guaranty of Collection: This type of guaranty only holds the guarantor responsible if certain conditions are met. For example, the guarantor may only be obligated to pay if a specific event occurs, such as the debtor's failure to repay the promissory note by a certain date. 3. Limited Guaranty of Collection: This type of guaranty limits the guarantor's liability to a specified amount. The guarantor is only responsible for the collection of the promissory note up to the agreed-upon limit. If the debt exceeds this limit, the guarantor is not obligated to cover the additional amount. 4. Continuing Guaranty of Collection: This type of guaranty covers multiple promissory notes or future loans between the debtor and creditor. It remains in effect until the guarantor revokes it or the parties involved terminate the agreement. The New Hampshire Guaranty of Collection of Promissory Note is an essential legal tool that protects the creditor's interests while providing an additional layer of security for the collection of debt. It is crucial for all parties involved to thoroughly understand the terms and conditions outlined in the agreement to ensure a fair and secure transaction.
