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.
Utah Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit A Utah Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit is a legal document that serves as a guarantee of payment to a lender when a line of credit is extended to a borrower in the state of Utah. This type of guaranty provides the lender with assurance that the borrower will fulfill their payment obligations on the extended credit. Keywords: Utah, absolute guaranty of payment, consideration, extension, line of credit, legal document, lender, borrower, payment obligations. Types of Utah Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit: 1. Personal Guaranty: This type of guaranty involves an individual providing a personal guarantee for the payment of the extended line of credit. The individual's personal assets may be used as collateral in case of default. 2. Corporate Guaranty: In this type of guaranty, a corporation guarantees the payment of the extended line of credit on behalf of the borrower. The corporation's assets may be utilized for repayment if the borrower fails to fulfill their payment obligations. 3. Joint and Several guaranties: This type of guaranty involves two or more individuals or entities jointly guaranteeing the payment of the extended line of credit. Each guarantor is liable for the total amount of the credit in case of default. 4. Limited Guaranty: In a limited guaranty, the guarantor's liability is limited to a specific amount or time period. This type of guaranty provides some protection to the guarantor, but they will still be responsible for the agreed-upon obligations. 5. Continuing Guaranty: A continuing guaranty remains in effect until it is revoked by the guarantor or terminated by the lender. This type of guaranty covers future credit extensions in addition to the initial line of credit. 6. Unconditional Guaranty: An unconditional guaranty provides the lender with an absolute and irrevocable promise of payment. The guarantor is obligated to fulfill the payment obligations without any conditions or limitations. In conclusion, a Utah Absolute Guaranty of Payment in Consideration of Extension of a Line of Credit is a legal document that ensures a lender's payment security when extending credit in the state of Utah. Various types of these guaranties exist, including personal, corporate, joint and several, limited, continuing, and unconditional guaranties. These different types offer varying levels of protection and obligations to the guarantor.
