Personal Guarantee
This Personal Guarantee (the "Guarantee") is given by [Guarantor full name], of [Guarantor home address] ("Guarantor"), in favor of [Creditor (lender, landlord or supplier)], of [Creditor address] ("Creditor"). [Borrower (the person or company whose obligation is guaranteed)] ("Borrower") is or will become obligated to Creditor under the following: [Type of obligation], described as [Describe the obligation being guaranteed], dated [Date of the underlying document], in the principal amount or total value of [Principal amount or total value of the obligation] (together with every renewal, extension, amendment and replacement of it, the "Obligation"). Creditor is willing to extend or continue credit to Borrower only if Guarantor gives this Guarantee, and Guarantor has a direct or indirect financial interest in Borrower and will benefit from that credit.
1. Guarantee
Guarantor unconditionally and irrevocably guarantees to Creditor the full and prompt payment when due, whether at maturity, by acceleration or otherwise, and the full performance, of every amount and obligation owed by Borrower under the Obligation, including principal, rent, interest, fees, late charges, costs of enforcement and any amount that would be owed but for Borrower’s bankruptcy. This is a guarantee of payment and performance, not merely of collection. The scope of this Guarantee is: [Scope of the guarantee]. If limited, Guarantor’s liability for the Obligation itself shall not exceed [Maximum guaranteed amount (or $0 if unlimited)], but that limit does not apply to interest accruing after demand on Guarantor or to the costs of enforcing this Guarantee under Section 8.
2. Continuing, Absolute and Unconditional
This Guarantee is continuing and covers the Obligation as it exists now and as it may be renewed, extended, increased within the scope stated above, amended or replaced. It is absolute and unconditional, and Guarantor’s liability is not affected by: (a) any lack of validity or enforceability of the Obligation against Borrower; (b) any change in the time, manner or place of payment or in any other term of the Obligation; (c) any release, substitution, impairment or failure to perfect any collateral securing the Obligation; (d) any release or settlement with Borrower or any other guarantor; (e) Borrower’s bankruptcy, insolvency, dissolution or change of ownership; or (f) any other circumstance that might otherwise constitute a legal or equitable discharge of a guarantor or surety. Creditor may demand payment from Guarantor on Borrower’s default without first proceeding against Borrower, any other guarantor or any collateral, and without exhausting any other remedy.
3. Consent to Changes
Guarantor consents in advance, without notice and without affecting this Guarantee, to Creditor: extending, renewing, accelerating or otherwise changing the time for payment of the Obligation; increasing or decreasing the rate of interest or any other charge; taking, releasing, exchanging or failing to perfect any security; releasing or compromising with Borrower or any other person liable; and applying any payment or collateral proceeds to the Obligation in any order Creditor chooses.
4. Waivers
To the fullest extent permitted by law, Guarantor waives: (a) notice of acceptance of this Guarantee, of any credit extended to Borrower, of any default, and of any demand on or action against Borrower; (b) presentment, demand, protest and notice of dishonor; (c) any right to require Creditor to proceed against Borrower, any other guarantor or any collateral, or to pursue any other remedy, before proceeding against Guarantor; (d) any defense based on the statute of limitations in any action against Guarantor to the extent the statute would bar a claim against Borrower; (e) any defense arising from the disability, incapacity or lack of authority of Borrower or from the cessation of Borrower’s liability for any reason other than full payment; and (f) every other suretyship defense. Until the Obligation is paid in full, Guarantor waives any right of subrogation, reimbursement, indemnity or contribution against Borrower or any other guarantor arising from payments under this Guarantee.
5. Subordination
Any debt Borrower now or later owes Guarantor is subordinated to the Obligation. While any part of the Obligation is unpaid and Borrower is in default, Guarantor shall not accept any payment from Borrower on that subordinated debt and shall hold any payment received in trust for Creditor and deliver it to Creditor to be applied to the Obligation.
6. Representations of Guarantor
Guarantor represents that: (a) Guarantor has full capacity and authority to give this Guarantee and it is Guarantor’s valid and binding obligation; (b) Guarantor has received adequate consideration, including the direct or indirect benefit of the credit extended to Borrower; (c) Guarantor has had the opportunity to review the Obligation and has independently assessed Borrower’s financial condition without relying on Creditor for any information; (d) no financial information Guarantor gave Creditor is materially false or misleading; and (e) giving this Guarantee does not violate any law, court order or agreement binding on Guarantor. Guarantor shall provide Creditor with a current personal financial statement within twenty (20) days after a written request made no more than once a year.
7. Revocation; Reinstatement
Guarantor may revoke this Guarantee as to obligations incurred by Borrower after Creditor receives written notice of revocation, but revocation does not affect Guarantor’s liability for any part of the Obligation existing, committed to or incurred before that receipt, or for any renewal or extension of it. This Guarantee remains in effect until the Obligation is paid and performed in full. If any payment on the Obligation is later set aside, recovered or required to be returned because of Borrower’s bankruptcy or insolvency, this Guarantee is reinstated as to that payment as though it had never been made. Joint and several: if more than one person signs as Guarantor, each is liable for the whole amount guaranteed.
8. Costs of Enforcement
Guarantor shall pay on demand all reasonable costs Creditor incurs in enforcing this Guarantee or collecting from Guarantor, including collection agency fees, court costs and reasonable attorney fees, whether or not a lawsuit is filed. Amounts due under this Guarantee bear interest from demand at the default rate under the Obligation or, if none, at ten (10) percent per year, but never more than the maximum rate permitted by law.
9. General
This Guarantee is governed by the laws of the State of [Governing law (state)], without regard to its conflict-of-laws rules. It is the entire agreement between Guarantor and Creditor about its subject and supersedes all prior discussions; no oral statement by Creditor limits it. It may be amended or waived only in a writing signed by Creditor. Creditor may assign this Guarantee together with the Obligation, and the assignee shall have every right of Creditor. Guarantor may not assign it. It binds Guarantor’s heirs, personal representatives and estate. If any provision is held invalid or unenforceable, it shall be enforced to the fullest extent permitted and the remainder remains in effect.
10. Electronic Signatures; Counterparts
This Guarantee may be signed electronically and in counterparts. The electronic execution record, timestamps and document fingerprints kept by the signing platform are conclusive evidence of execution and delivery. Creditor’s signature below acknowledges acceptance; this Guarantee is binding on Guarantor upon Guarantor’s signature alone. GUARANTOR ACKNOWLEDGES HAVING READ THIS GUARANTEE, UNDERSTANDING THAT IT CREATES PERSONAL LIABILITY FOR BORROWER’S DEBT, AND HAVING HAD THE OPPORTUNITY TO CONSULT A LAWYER.
Signatures
Creditor · Guarantor