A New York Subsidiary Guaranty Agreement is a legal document that outlines the terms and conditions of a guarantee provided by a subsidiary company to the parent company or a third-party lender. This agreement signifies the subsidiary's commitment to fulfill the financial obligations of a loan or any other contractual arrangement in the event of default by the borrower. Key elements of a New York Subsidiary Guaranty Agreement include the identification of the parties involved (parent company, subsidiary, and lender), detailed terms of the guarantee, and provisions for repayment. The agreement typically specifies the maximum liability the subsidiary is willing to assume, the duration of the guarantee, and any specific conditions or events that could trigger its activation. There are different types of New York Subsidiary Guaranty Agreements that can be tailored to suit specific circumstances: 1. Unconditional Guaranty: This agreement provides an unconditional and irrevocable guarantee by the subsidiary to repay the debt or fulfill the contractual obligations in full, regardless of any circumstances. It is generally favored by lenders due to its comprehensive nature. 2. Conditional Guaranty: In this type of agreement, the subsidiary's guarantee is contingent upon specific conditions being met. These conditions could include the borrower's default, insolvency, or breach of the underlying agreement. A conditional guaranty offers more protection to the subsidiary, as it limits their liability based on predetermined triggers. 3. Limited Guaranty: This agreement restricts the subsidiary's liability to a predetermined extent. The subsidiary guarantees a portion or a specified amount of the debt or contractual obligation, providing partial coverage instead of assuming full responsibility. A limited guaranty may be negotiated when the subsidiary wants to minimize its exposure while still providing some level of financial support. 4. Continuing Guaranty: This type of New York Subsidiary Guaranty Agreement remains in effect until expressly revoked, and covers not only existing debts or obligations but also any future ones. A continuing guaranty allows the lender to rely on the subsidiary's guarantee across multiple transactions, providing increased flexibility and convenience. It's important to note that New York Subsidiary Guaranty Agreements must comply with the laws and regulations of the state. These agreements are legally binding and should be drafted carefully to ensure all parties involved fully understand their rights, obligations, and the potential consequences of default. Seeking legal advice is recommended to ensure the agreement is properly structured and enforceable.
New York Subsidiary Guaranty Agreement
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How to fill out New York Subsidiary Guaranty Agreement?
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Guaranty and Security Agreement means a guaranty and security agreement, dated as of even date with the Agreement, in form and substance reasonably satisfactory to Administrative Agent, executed and delivered by each of the Borrowers and each of the Guarantors to Administrative Agent.
Company Non-Subsidiary Entity means any Person in which the Company or any of its subsidiaries owns, directly or indirectly, any equity or similar interests, or any interest convertible into or exchangeable or exercisable for any equity or similar interests, other than a subsidiary and any publicly traded entity in
Guarantee can refer to the agreement itself as a noun, and the act of making the agreement as a verb. Guaranty is a specific type of guarantee that is only used as a noun.
Subsidiary Agreement means the partnership agreement of any Subsidiary that is a limited or general partnership, the limited liability company agreement of any Subsidiary that is a limited liability company, the certificate of incorporation and bylaws or similar organizational documents of any Subsidiary that is a
Sub-Clauses For purposes of this Agreement, subsidiary means any corporation of which more than 50% of the outstanding voting securities is owned directly or indirectly by the Company, by the Company and one or more other subsidiaries, or by one or more other subsidiaries. See All (399)
Guaranty Agreement a two-party contract in which the first party agrees to perform in the event that a second party fails to perform. Unlike a surety, a guarantor is only required to perform after the obligee has made every reasonable and legal effort to force the principal's performance.
An upstream guarantee, also known as a subsidiary guarantee, is a financial guarantee in which the subsidiary guarantees its parent company's debt.
The Guarantor undertakes to pay compensation up to a certain amount to the Beneficiary in case the Applicant/Instructing Party fails to deliver the goods or to carry out certain work. This type of Guarantee is often issued for 5-10% of the contract value, although the percentage varies case by case.
The term downstream guarantee is used where a parent company guarantees the obligations of its subsidiary. It is usually fairly clear where the benefit is to the parent in doing this as ultimately, the success of the subsidiary will usually benefit the parent.
An upstream guarantee, also known as a subsidiary guarantee, is a financial guarantee in which the subsidiary guarantees its parent company's debt.