[{"data":1,"prerenderedAt":525},["ShallowReactive",2],{"document-financial-support-agreement-regarding-guaranty-of-obligation-D876":3},{"document":4,"label":21,"preview":11,"thumb":22,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":23,"breadcrumb":27,"related":33,"customDescModule":176,"customdescription":6,"mdFm":177,"mdProseHtml":524},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":20},"FINANCIAL SUPPORT AGREEMENT REGARDING GUARANTY OF OBLIGATION This Financial Support Agreement Regarding Guaranty of Obligation (the \"Agreement\") is effective [DATE], BETWEEN: [GUARANTY ISSUER NAME] (the \"Guarantor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Receiver\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] recitals Guarantor has issued or will continue to maintain the guaranty attached as Exhibit A hereto (the \"Guaranty\") following the transfer of Guarantor's controlling interest in Receiver. Receiver agrees to pay Guarantor a fee pursuant to the following terms and conditions. GUARANTY FEE Guaranty Fee shall be [%] per [ANNUM/MONTH], calculated [MONTHLY/DAILY], charged on the month-end outstanding balance of the Guaranty, as evidenced by the amortization schedule attached hereto as Exhibit B and will be payable [SEMI-ANNUALLY] on [JUNE 30th] and [DECEMBER 31st] of each calendar year. If the Guaranty is outstanding for less than a full calendar month, Guaranty Fee shall be computed based on the outstanding balance of the Guaranty on each calendar day of such month that the Guaranty shall remain in effect. ADJUSTMENT TO GUARANTY FEE The Guaranty Fee set forth above was determined based on the assumption that Receiver's credit rating post-Separation would be equivalent to the average of the ratings of [BBB/Baa2 and BBB-/Baa3]. Guarantor shall have a one-time right to increase, effective prospectively, the Guaranty Fee (the \"Adjusted Guaranty Fee\") if either one of the following events occurs: Standard & Poor's issues a credit rating for Receiver of [BB+] or less; or Moody's issues a credit rating for Receiver of [Ba1] or less. Such right may be exercised at any time by written notice to Receiver. If either of the events described above occurs, the Adjusted Guaranty Fee shall be determined by Guarantor by averaging the rates quoted to Guarantor by three nationally recognized banking institutions for a credit equivalent to the published credit ratings of Receiver. The Adjusted Guaranty Fee shall become the Guaranty Fee payable under this Agreement from and after the date on which Guarantor provides Receiver written notice of the Adjusted Guaranty Fee. PAYMENT OF FEE Guaranty Fee is due not later than [NUMBER] business days following the end of each [SEMI-ANNUAL] payment period as defined in Section 1 and shall be delivered by [PAYMENT METHOD, e.g. bank wire] or such other bank account as shall be provided to Receiver by Guarantor in writing at least 5 business days prior to the payment due date. In the event the Guaranty is terminated, replaced by Receiver or expires prior to the end of the [SEMI-ANNUAL] payment period, Guaranty Fee will be due not later than [NUMBER] business days following the termination of all obligations of Guarantor under the Guaranty. 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Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[93,96,99],{"label":94,"url":95},"Finance & Accounting","finance-accounting",{"label":97,"url":98},"Business Loans","business-loan",{"label":100,"url":101},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":105,"descriptionCustom":6,"label":106,"pages":107,"size":108,"extension":10,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":114,"keywords":113,"url":120},"INDEMNIFICATION AGREEMENT This Indemnification Agreement (\"Agreement\") is effective as of [DATE], BETWEEN: [NAME OF THE INDEMNIFYING PARTY] (the \"Indemnifier\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF THE INDEMNITEE] (the \"Indemnitee \"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Indemnitee seeks protection against any personal liability, claim, suit, action, loss, or damage that may result from the Indemnitee's participation in the Activity. WHEREAS, the Indemnifier seeks to minimize any hardship the Indemnitee might suffer as the result of any personal liability, claim, suit, action, loss, or damage that may result from the Indemnitee's participation in the Activity. NOW THEREFORE in consideration and as a condition of the Indemnifier and the Indemnitee entering into this Agreement and other valuable considerations, the receipt and sufficiency of which consideration is acknowledged, the Parties agree as follows: INDEMNIFIED ACTIVITY The Indemnitee seeks to be protected from the following indemnified activity (hereinafter referred to as the \"Activity\"): [SPECIFY ACTIVITY] INDEMNITY The Indemnifier agrees to indemnify and hold harmless the Indemnitee, its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from the Activity. EXCEPTIONS TO INDEMNIFICATION The Indemnifier shall not be obligated to indemnify the Indemnitee for any fines, expenses, judgments, settlements, and other obligations incurred as the result of the Indemnitee's participation in the Activity: In the case of a criminal proceeding; or In the case of a civil claim where the Indemnitee did not act in good faith and/or in a reasonable manner; or If the Indemnitee will or has received payment under a valid and collectible insurance policy or under a valid and enforcement indemnity clause, bylaw or agreement, except where payment under the insurance policy, clause, bylaw or agreement is not sufficient to fully indemnify the Indemnitee, in which case the Indemnifier will be responsible for any shortfall in the payment received; or If an action or proceeding was initiated in whole in or in part by the Indemnitee, whether alone or along with one or more other claimants, unless the action or proceeding has the written consent of the Indemnifier. NOTICE OF CLAIM In the event of any claim or action, the Indemnitee must promptly provide the Indemnifier with written notice of the claim or action and will notify the Indemnifier of any legal proceedings relating to the claim or action within [NUMBER OF DAYS] of the Indemnitee's receipt of notice of such proceedings. The Indemnitee must provide the Indemnifier with all known information available to the Indemnitee relating to the claim or action. COOPERATION ​ The Indemnitee agrees to wholly cooperate with the Indemnifier in the defence of any claim or action against it that the Indemnitee seeks to be indemnified for, including but not limited to, providing the Indemnifier with all available information related to the claim or action, responding to reasonable requests from the Indemnifier for information, documentation, and the like","Indemnification Agreement","4",513,"https://templates.business-in-a-box.com/imgs/1000px/sample-doc-for-test-D13016.png","https://templates.business-in-a-box.com/imgs/250px/13016.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13016.xml",{"title":113,"description":6},"indemnification agreement",[115,117],{"label":17,"url":116},"business-legal-agreements",{"label":118,"url":119},"Release Agreements","release-agreement","/template/indemnification-agreement-D13016",{"description":122,"descriptionCustom":6,"label":123,"pages":124,"size":108,"extension":10,"preview":125,"thumb":126,"svgFrame":127,"seoMetadata":128,"parents":130,"keywords":129,"url":134},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":129,"description":6},"loan agreement",[131,132,133],{"label":94,"url":95},{"label":97,"url":98},{"label":97,"url":98},"/template/loan-agreement-D417",{"description":136,"descriptionCustom":6,"label":137,"pages":138,"size":139,"extension":10,"preview":140,"thumb":141,"svgFrame":142,"seoMetadata":143,"parents":144,"keywords":147,"url":148},"SECURITY AGREEMENT This Security Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [SECURED PARTY NAME] (the \" Secured Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Debtor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] For value received, the undersigned Debtor, promises to pay to the order of [name], together with any other holder of this note (\"Secured Party\"), [amount], with interest at the rate of [%] per annum. Payment shall be made in successive equal monthly installments of [amount]. Each such Installment is payable on the [day] of each month, commencing on [date]. Recitals WHEREAS, the Secured Party has extended to the Debtor a certain loan as evidenced by a certain promissory note, in the original principal amount equal to [amount] dated on even date herewith (the \"Note\"); and WHEREAS, the Debtor wishes to grant a first priority security interest in and to all of the Debtor's tangible and intangible personal property pursuant to the terms hereof; NOW, THEREFORE, for and in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows: DEFINITIONS The following terms shall have the meanings herein specified unless the context otherwise requires. Such definitions shall be equally applicable to the singular and plural forms of the terms defined: \"Contracts\" shall mean all contracts between the Debtor and one or more additional parties. \"Contract Rights\" shall mean all rights of the Debtor (including, without limitation, all rights to payment) under each Contract. \"Copyrights\" shall mean any [country] copyright to which the Debtor now or hereafter has title, as well as any application for a [country] copyright hereafter made by the Debtor. \"Equipment\" shall mean any \"equipment,\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned by the Debtor and any and all additions, substitutions and replacements of, any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. \"General Intangibles\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Goods\" shall have the meaning assigned that term under the [LAW OR CODE] as in effect on the date hereof in the State of [state/province]. \"Inventory\" shall mean all raw materials, workinprocess, and finished inventory of the Debtor of every type or description and all documents of title covering such inventory, and shall specifically include all \"inventory\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [state/province], now or hereafter owned by the Debtor. \"Marks\" shall mean any trademarks and service marks now held or hereafter acquired by the Debtor, which are registered in the [country] Patent and Trademark Office, as well as any unregistered marks used by the Debtor in the [COUNTRY] and trade dress, including logos and/or designs, in connection with which any of these registered or unregistered marks are used. \"Obligations\" shall mean: (i) all indebtedness, obligations and liabilities (including, without limitation, guarantees and other contingent liabilities) of the Debtor to the Secured Party, including but not limited to the Note; (ii) any and all sums advanced by the Secured Party in order to preserve the Collateral or preserve its security interest in the Collateral; and (iii) in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Debtor referred to in clause (i), after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Collateral Agent of its rights hereunder, together with reasonable attorneys' fees and court costs. \"Patents\" shall mean any [country] patent to which the Debtor now or hereafter has title, as well as any application for a [country] patent now or hereafter made by Debtor. \"Proceeds\" shall have the meaning assigned that term under the [law or code] as in effect in the State of [state/province] on the date hereof or under other relevant law and, in any event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Secured Party or the Debtor from time to time with respect to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority and (iii) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. \"Receivables\" shall mean any \"account\" as such term is defined in the [law or code] as in effect on the date hereof in the State of [STATE/PROVINCE], now or hereafter owned by Debtor and, in any event, shall include, but shall not be limited to, all of the Debtor's rights to payment for goods sold or leased or services performed by the Debtor, whether now in existence or arising from time to time hereafter, including, without limitation, rights evidenced by an account, note, contract, security agreement, or other evidence of indebtedness or security, together with (i) all security pledged, assigned, hypothecated or granted to or held by the Debtor to secure the foregoing; (ii) all of the Debtor's right, title and interest in and to any goods, the sale of which gave rise thereto; (iii) all guarantees, endorsements and indemnifications on, or of, any of the foregoing; (iv) all powers of attorney for the execution of any evidence of indebtedness or security or other writing in connection therewith; (v) all books, records, ledger cards and invoices relating thereto; (vi) all evidences of the filing of financing statements and other statements and the registration of other instruments in connection therewith and amendments thereto, notices to other creditors or secured parties, and certificates from filing or other registration officers; (vii) all credit information, reports and memoranda relating thereto and (viii) all other writings related in any way to the foregoing. GRANT OF SECURITY INTEREST The Debtor does hereby grant to the Secured Party a continuing security interest of first priority in all of the right, title and interest of the Debtor in, to and under all of the following property whether now existing or hereafter created or arising: ","Security Agreement","10",96,"https://templates.business-in-a-box.com/imgs/1000px/security-agreement-D915.png","https://templates.business-in-a-box.com/imgs/250px/915.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#915.xml",{"title":6,"description":6},[145,146],{"label":17,"url":116},{"label":17,"url":116},"security agreement","/template/security-agreement-D915",{"description":150,"descriptionCustom":6,"label":151,"pages":86,"size":108,"extension":10,"preview":152,"thumb":153,"svgFrame":154,"seoMetadata":155,"parents":157,"keywords":156,"url":162},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":156,"description":6},"non disclosure agreement nda",[158,159],{"label":17,"url":116},{"label":160,"url":161},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":164,"descriptionCustom":6,"label":165,"pages":86,"size":108,"extension":10,"preview":166,"thumb":167,"svgFrame":168,"seoMetadata":169,"parents":171,"keywords":174,"url":175},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: LETTER OF INTENT-ACQUISITION OF BUSINESS Dear [CONTACT NAME]: This letter (\"Letter of Intent\") sets forth the basic preliminary terms between the Buyer or his nominee and yourselves regarding the purchase of the [SPECIFY] business (the \"Business\") carried on by yourselves. Except as specifically set forth herein, this Letter of Intent shall not constitute an agreement between the parties and no agreement shall be deemed to exist until execution of a definitive purchase agreement. It is proposed that Buyer will acquire certain assets of the Business which Buyer believes to be necessary to the future of the Business, including the warehouse in [CITY/STATE] in which [COMPANY NAME] the Company has invested [AMOUNT] in cash and which has been financed by a mortgage loan of approximately [AMOUNT] granted by the [SPECIFY COMPANY] [CITY/STATE]. Buyer understands that the said warehouse has no other charges or liabilities affecting it other than the said mortgage loan. Buyer may either purchase the warehouse outright or enter into a lease-purchase or instalment transfer of ownership which is satisfactory to both parties. The gross purchase price for the said warehouse will be [AMOUNT]. Buyer may purchase or lease barrels and other equipment currently owned by the Company which are necessary to operate the Business, on a cash or instalment basis agreeable to both parties. The specific assets to be purchased and the amounts to be paid by Buyer in connection with this transaction remain to be negotiated by the parties. This Letter of Intent also evidences the intentions of the parties with respect to the following agreements: Buyer will enter into a [NUMBER]-year employment agreement with [COMPANY NAME], providing for the Company will be responsible for the purchase of [SPECIFY] for Buyer. The agreement will contain the customary terms and conditions found in employment agreements in similar transactions and will provide for the usual non-competition and non-solicitation covenants to be entered into by the Company in favour of Buyer. It is expressly understood that if the contemplated transaction is consummated, the aggregate amount of commission paid or payable to yourselves (net of reasonable expenses acceptable to Buyer) in respect of all purchases of [SPECIFY] made through you from the date of this Letter of Intent to the date of closing, with the exception of commissions earned on the [NUMBER] truckloads of [SPECIFY] to be delivered to Buyer during the week of [DATE] to [DATE], will be applied against remuneration payable to the Company in the first year of his employment agreement. If the contemplated transaction is not consummated, all such commissions paid or payable will be treated as commissions. Buyer will enter into a [NUMBER]-year employment agreement with [EMPLOYEE NAME], providing for the payment of a gross base salary of [ANNUAL SALARY] per year, to be paid weekly, subject to annual review. [EMPLOYEE NAME] will be President of the Business and the employment agreement will provide for health benefits, automobile, expenses and bonus arrangements","Letter of Intent_Acquisition of Business","https://templates.business-in-a-box.com/imgs/1000px/letter-of-intent_acquisition-of-business-D5197.png","https://templates.business-in-a-box.com/imgs/250px/5197.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5197.xml",{"title":170,"description":6},"letter of intent_acquisition of business",[172,173],{"label":17,"url":116},{"label":17,"url":116},"letter intent_acquisition business","/template/letter-of-intent_acquisition-of-business-D5197",false,{"seo":178,"reviewer":190,"quick_facts":194,"at_a_glance":197,"personas":201,"variants":226,"glossary":254,"clauses":288,"how_to_fill":339,"common_mistakes":380,"faqs":397,"industries":425,"comparisons":450,"diy_vs_lawyer":464,"jurisdictions":477,"related_template_ids_curated":498,"schema":511,"classification":512},{"meta_title":179,"meta_description":180,"primary_keyword":181,"secondary_keywords":182},"Financial Support Agreement Regarding Guaranty Of | BIB","Free financial support agreement template covering guaranty of obligation. Defines guarantor duties, payment terms, and default remedies.","financial support agreement guaranty of obligation",[183,184,185,186,187,188,189],"guaranty of obligation template","financial support agreement template","guaranty agreement template word","personal guarantee agreement template","corporate guaranty agreement","guaranty of debt template free","financial guarantee contract template",{"name":191,"credential":192,"reviewed_date":193},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":195,"legal_review_recommended":196,"signature_required":196},"advanced",true,{"what_it_is":198,"when_you_need_it":199,"whats_inside":200},"A Financial Support Agreement Regarding Guaranty of Obligation is a legally binding contract in which a guarantor — an individual or corporate entity — formally promises to fulfill the financial obligations of a primary obligor if that obligor defaults. This free Word download gives you a structured, attorney-style starting point you can edit online and export as PDF for execution by all parties.\n","Use it when a lender, landlord, or counterparty requires a creditworthy third party to back the obligations of a borrower, tenant, or subsidiary before extending credit, signing a lease, or entering a commercial contract. It is also used when a parent company formally supports the debt or contractual performance of a subsidiary.\n","Identification of guarantor and primary obligor, the specific obligation being guaranteed, the scope and cap of the guaranty, payment and performance conditions, representations and warranties of the guarantor, default triggers, remedies, waiver of defenses, governing law, and termination conditions.\n",[202,206,210,214,218,222],{"title":203,"use_case":204,"icon_asset_id":205},"Commercial lenders and banks","Requiring a parent or owner guaranty before issuing a business loan","persona-lender",{"title":207,"use_case":208,"icon_asset_id":209},"Commercial landlords","Securing a personal or corporate guaranty on a retail or office lease","persona-landlord",{"title":211,"use_case":212,"icon_asset_id":213},"Parent company CFOs","Providing a formal guaranty to support a subsidiary's credit facility","persona-cfo",{"title":215,"use_case":216,"icon_asset_id":217},"Small business owners","Signing a personal guaranty to qualify for vendor credit or equipment financing","persona-small-business-owner",{"title":219,"use_case":220,"icon_asset_id":221},"Private equity sponsors","Issuing a completion or payment guaranty on a portfolio company obligation","persona-investor",{"title":223,"use_case":224,"icon_asset_id":225},"Contract counterparties","Requiring a creditworthy guarantor before extending trade credit to a startup","persona-contractor",[227,231,235,239,243,247,251],{"situation":228,"recommended_template":229,"slug":230},"Individual owner personally guaranteeing a business loan","Personal Guarantee Agreement","personal-guarantee-D405",{"situation":232,"recommended_template":233,"slug":234},"Parent company guaranteeing a subsidiary's contractual performance","Corporate Guaranty Agreement","guaranty-agreement-D13699",{"situation":236,"recommended_template":237,"slug":238},"Guaranteeing payment of a specific debt only (not performance)","Payment Guaranty Agreement","payment-guaranty-D404",{"situation":240,"recommended_template":241,"slug":242},"Guaranteeing completion of a construction or project contract","Performance Bond / Completion Guaranty","performance-evaluation-D694",{"situation":244,"recommended_template":245,"slug":246},"Landlord requiring a guaranty on a commercial lease","Lease Guaranty Agreement","guaranty-of-a-lease-D1177",{"situation":248,"recommended_template":249,"slug":250},"Limited guaranty capped at a specific dollar amount or time period","Limited Financial Guaranty Agreement","financial-support-agreement-regarding-guaranty-of-obligation-D876",{"situation":252,"recommended_template":253,"slug":234},"Multiple guarantors sharing joint and several liability","Joint and Several Guaranty Agreement",[255,258,261,264,267,270,273,276,279,282,285],{"term":256,"definition":257},"Guarantor","The party who agrees to fulfill the obligations of the primary obligor if that obligor fails to perform or pay.",{"term":259,"definition":260},"Primary Obligor","The original debtor, borrower, or contracting party whose obligations are being guaranteed by the guarantor.",{"term":262,"definition":263},"Guaranteed Obligation","The specific debt, payment, or contractual performance that the guarantor promises to cover upon the primary obligor's default.",{"term":265,"definition":266},"Unconditional Guaranty","A guaranty in which the guarantor waives the right to require the creditor to first pursue the primary obligor before demanding payment from the guarantor.",{"term":268,"definition":269},"Continuing Guaranty","A guaranty that remains in force for all obligations incurred over a period of time, rather than covering only a single transaction.",{"term":271,"definition":272},"Waiver of Subrogation","A clause in which the guarantor agrees not to seek repayment from the primary obligor after satisfying the guaranteed obligation, protecting the creditor's position.",{"term":274,"definition":275},"Suretyship","The legal relationship in which one party (the surety or guarantor) is primarily or secondarily liable for another party's obligations to a third party.",{"term":277,"definition":278},"Indemnification","A contractual obligation by which one party agrees to compensate the other for losses, damages, or liabilities arising from a specified event or breach.",{"term":280,"definition":281},"Demand Guaranty","A guaranty payable immediately upon written demand by the beneficiary, without requiring proof of the primary obligor's default.",{"term":283,"definition":284},"Subrogation","The legal right of a guarantor who has paid the guaranteed debt to step into the creditor's shoes and pursue the primary obligor for reimbursement.",{"term":286,"definition":287},"Joint and Several Liability","A liability structure in which each of multiple guarantors can be held individually responsible for the full amount of the obligation, not merely a proportional share.",[289,294,299,304,309,314,319,324,329,334],{"name":290,"plain_english":291,"sample_language":292,"common_mistake":293},"Parties and Recitals","Identifies the guarantor, the primary obligor, and the beneficiary (creditor), and summarizes the background transaction that gives rise to the guaranty.","This Financial Support Agreement ('Agreement') is entered into as of [DATE] by and between [GUARANTOR LEGAL NAME] ('Guarantor'), [PRIMARY OBLIGOR LEGAL NAME] ('Obligor'), and [BENEFICIARY LEGAL NAME] ('Beneficiary'). WHEREAS, Obligor has entered into [DESCRIPTION OF UNDERLYING OBLIGATION] dated [DATE] ('Underlying Agreement'), and Beneficiary requires the Guarantor's financial support as a condition thereof.","Using trade names instead of registered legal entity names. If the guarantor entity name is wrong, enforcement against the guarantor's assets becomes legally complicated and expensive.",{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Guaranty of Obligation","The operative clause in which the guarantor formally and unconditionally promises to pay or perform if the primary obligor defaults.","Guarantor hereby irrevocably and unconditionally guarantees to Beneficiary the full and punctual payment and performance of all Guaranteed Obligations. This guaranty is an absolute, primary, and unconditional obligation of Guarantor and is not contingent on Beneficiary first pursuing any remedy against Obligor.","Drafting a conditional guaranty when the beneficiary requires an unconditional one. A guaranty that requires the creditor to exhaust remedies against the primary obligor first significantly weakens the beneficiary's security.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Scope and Cap of the Guaranty","Defines whether the guaranty is limited (capped at a dollar amount or time period) or unlimited, and lists any specific exclusions.","The Guarantor's aggregate liability under this Agreement shall not exceed [AMOUNT IN DOLLARS] ('Guaranty Cap') / shall be unlimited and cover all obligations, fees, costs, and interest under the Underlying Agreement.","Omitting a cap when the guarantor intends to limit exposure. Without explicit cap language, courts typically treat the guaranty as covering the full outstanding obligation plus accrued interest and enforcement costs.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Representations and Warranties of the Guarantor","The guarantor's statements of fact — that it is duly organized, has authority to enter the guaranty, and that no conflict or insolvency exists — made to induce the beneficiary's reliance.","Guarantor represents and warrants that: (a) it is duly organized and in good standing under the laws of [STATE/COUNTRY]; (b) it has full power and authority to execute and perform this Agreement; (c) this Agreement constitutes a legal, valid, and binding obligation of Guarantor; and (d) no insolvency proceedings are pending or threatened against Guarantor.","Skipping financial condition representations. Without a solvency representation, the beneficiary may face fraudulent transfer challenges if the guarantor was insolvent at the time of signing.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Waivers of Defenses","The guarantor waives standard legal defenses — such as the right to require the beneficiary to pursue the primary obligor first, or to claim the guaranty is void due to modifications to the underlying obligation.","To the fullest extent permitted by applicable law, Guarantor hereby waives: (a) any right to require Beneficiary to proceed against Obligor or exhaust any security before proceeding against Guarantor; (b) any defense arising from modification, extension, or amendment of the Underlying Agreement; and (c) notice of default, demand, and protest.","Omitting waiver of the 'suretyship defenses' entirely. Without explicit waivers, a guarantor may successfully argue the guaranty was discharged when the beneficiary modified the underlying loan or extended its term without the guarantor's consent.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Default and Demand","Defines what constitutes a default by the primary obligor, the process for the beneficiary to make a demand on the guarantor, and the timeline for the guarantor to pay or perform.","Upon the occurrence of a Default by Obligor under the Underlying Agreement, Beneficiary may deliver written notice of demand to Guarantor at the address set forth herein. Guarantor shall satisfy the Guaranteed Obligation within [X] business days of receipt of such demand.","Tying the demand trigger solely to a court judgment against the primary obligor. This forces the beneficiary through litigation before the guaranty becomes callable, defeating much of its commercial purpose.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Indemnification and Costs","Requires the guarantor to reimburse the beneficiary for legal fees, collection costs, and other expenses incurred in enforcing the guaranty or the underlying obligation.","Guarantor agrees to indemnify and hold harmless Beneficiary from and against all costs, expenses, and reasonable attorneys' fees incurred in connection with the enforcement of this Agreement or the collection of the Guaranteed Obligations.","Limiting indemnification to direct costs only. Enforcement of guaranty agreements frequently involves third-party collection agents and post-judgment interest that exceed the principal — and narrow indemnification language leaves those costs on the beneficiary.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Subrogation and Contribution","States whether the guarantor may seek reimbursement from the primary obligor after paying, and how contribution works when multiple guarantors share the obligation.","Upon full payment of all Guaranteed Obligations, Guarantor shall be subrogated to the rights of Beneficiary against Obligor to the extent of such payment, provided that Guarantor shall not exercise any subrogation rights until all obligations under the Underlying Agreement are fully and finally satisfied.","Allowing the guarantor to exercise subrogation rights before the beneficiary is fully paid out. Premature subrogation can dilute the creditor's recovery position if the primary obligor has limited assets.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Governing Law and Jurisdiction","Specifies which jurisdiction's law governs the agreement, where disputes will be resolved, and whether arbitration or court litigation applies.","This Agreement shall be governed by and construed in accordance with the laws of the State of [STATE], without regard to its conflict-of-laws principles. Each party irrevocably consents to the exclusive jurisdiction of the courts of [COUNTY], [STATE] for resolution of any dispute arising hereunder.","Choosing a governing law with no connection to where the guarantor is domiciled or the underlying transaction is performed. Courts in the guarantor's home jurisdiction may apply local law regardless of the choice-of-law clause, particularly for consumer guaranties or where public policy is implicated.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Termination and Continuing Nature","Specifies whether the guaranty terminates upon full satisfaction of the guaranteed obligation, upon written notice, or continues indefinitely as a revolving support.","This Agreement shall remain in full force and effect until all Guaranteed Obligations have been fully, finally, and indefeasibly paid and performed. Any notice of termination by Guarantor shall not affect obligations arising from commitments made by Beneficiary prior to receipt of such notice.","Permitting the guarantor to terminate the guaranty by written notice without a carve-out for obligations already incurred. A guarantor who can simply revoke mid-term provides effectively no security for a revolving credit facility.",[340,345,350,355,360,365,370,375],{"step":341,"title":342,"description":343,"tip":344},1,"Identify all parties with their full legal names","Enter the guarantor's registered legal name and jurisdiction of organization, the primary obligor's full legal name, and the beneficiary's full legal name and contact details for notices.","Cross-reference each entity's current good-standing certificate before execution — a dissolved or administratively revoked entity cannot enter an enforceable guaranty.",{"step":346,"title":347,"description":348,"tip":349},2,"Describe the underlying obligation precisely","Reference the specific loan agreement, lease, or contract being guaranteed by its full title, date, and parties. Attach a copy as an exhibit where the underlying document is lengthy or complex.","Vague references to 'all obligations of the Obligor' can inadvertently capture unintended future debts — be specific unless a continuing guaranty is genuinely intended.",{"step":351,"title":352,"description":353,"tip":354},3,"Set the scope and cap of the guaranty","Decide whether the guaranty is unlimited or subject to a maximum dollar cap, and whether it covers only payment or both payment and performance. State this explicitly in the guaranty scope clause.","If the guarantor is an individual, a dollar cap and a sunset clause (e.g., the guaranty expires 24 months after the loan's final maturity) provide measurable personal-liability management.",{"step":356,"title":357,"description":358,"tip":359},4,"Complete the representations and warranties block","Confirm the guarantor's organizational status, authority, and absence of conflicting obligations or insolvency proceedings. If a corporate guarantor, attach a board resolution authorizing execution.","A board resolution is not just a formality — without it, a corporate guarantor can later argue the signatory lacked authority, voiding the guaranty entirely.",{"step":361,"title":362,"description":363,"tip":364},5,"Review and tailor the waivers-of-defenses clause","Confirm with counsel which suretyship defenses the beneficiary requires to be waived. Standard waivers include notice of default, demand, presentment, and the right to require exhaustion of remedies against the primary obligor.","In some US states and EU jurisdictions, certain suretyship waivers by consumer guarantors are void as a matter of public policy — confirm the waiver list is jurisdiction-appropriate before finalizing.",{"step":366,"title":367,"description":368,"tip":369},6,"Define the default trigger and demand process","Specify what constitutes a default under the underlying agreement, the form of demand notice, the address for delivery, and the number of business days the guarantor has to satisfy the demand after receipt.","Use a specific business-day cure period (5–10 business days is standard) rather than 'promptly' or 'immediately' — vague timelines generate disputes about when the guarantor is actually in breach.",{"step":371,"title":372,"description":373,"tip":374},7,"Execute before the underlying obligation closes","Both parties must sign the guaranty — and a corporate guarantor must have an authorized officer sign alongside a board resolution — before or simultaneously with the closing of the underlying transaction.","A guaranty signed after the underlying loan or lease is executed may lack consideration in common-law jurisdictions and can be challenged as unenforceable.",{"step":376,"title":377,"description":378,"tip":379},8,"Retain executed copies and calendar review dates","Store the fully executed guaranty alongside the underlying agreement. For continuing or long-term guaranties, calendar an annual review to confirm the guaranty scope still matches the outstanding obligation.","If the underlying loan is amended to increase the principal amount, confirm whether the existing guaranty covers the increased amount or whether a new or amended guaranty is required.",[381,385,389,393],{"mistake":382,"why_it_matters":383,"fix":384},"Signing after the underlying transaction closes","A guaranty executed after the underlying loan or lease is already in place may be unenforceable for lack of new consideration in common-law jurisdictions, leaving the beneficiary with no security.","Execute the guaranty simultaneously with the closing of the underlying obligation, or provide documented fresh consideration — such as a fee payment or an amendment to the underlying terms — if signing after the fact.",{"mistake":386,"why_it_matters":387,"fix":388},"Omitting explicit waivers of suretyship defenses","Without waivers, a guarantor can argue the guaranty was discharged when the beneficiary modified the loan terms, granted extensions, or released collateral — each of which is a standard lender action during a workout.","Include a comprehensive waiver clause covering modification, extension, impairment of collateral, and release of co-obligors, and have the guarantor acknowledge the waivers explicitly at signing.",{"mistake":390,"why_it_matters":391,"fix":392},"No cap when the guarantor intends limited exposure","Courts interpret unlimited guaranty language strictly — a guarantor who intended to cover only the original principal may find themselves liable for accrued interest, penalties, and attorneys' fees that double the original obligation.","State the maximum dollar cap and any time-based limit in the guaranty scope clause. If the cap is intended to step down over time as the principal amortizes, build that schedule into the agreement.",{"mistake":394,"why_it_matters":395,"fix":396},"Using the wrong entity as guarantor","A guaranty signed by a parent company that has been restructured, or by an individual in a personal capacity when the beneficiary required a corporate guaranty, provides no meaningful credit support and may be entirely void.","Confirm the guarantor entity's legal status, jurisdiction, and authority before execution. Obtain a current good-standing certificate and a board resolution authorizing the guaranty for any corporate guarantor.",[398,401,404,407,410,413,416,419,422],{"question":399,"answer":400},"What is a financial support agreement regarding guaranty of obligation?","A financial support agreement regarding guaranty of obligation is a legally binding contract in which a guarantor — an individual or entity — formally promises to satisfy the financial obligations of a primary obligor if that obligor fails to pay or perform. It gives the beneficiary (typically a lender, landlord, or contract counterparty) a creditworthy secondary source of recovery beyond the primary obligor. The guaranty is typically a condition of extending credit, entering a lease, or agreeing to a large commercial contract.\n",{"question":402,"answer":403},"What is the difference between a guaranty and a surety bond?","A guaranty is a direct contractual promise from one party to cover another's obligation, typically between the guarantor and the beneficiary without a third-party insurer. A surety bond involves a licensed surety company that issues a formal bond instrument, often required for public construction contracts and regulated industries. Guaranty agreements are more common in private commercial transactions; surety bonds are generally used where government or statutory requirements mandate a bonded instrument. Both create secondary liability, but their legal structure, cost, and enforceability process differ materially.\n",{"question":405,"answer":406},"Is a personal guaranty enforceable against an individual's personal assets?","Yes. A validly executed personal guaranty typically allows the beneficiary to pursue the individual guarantor's personal assets — bank accounts, real property, and personal investments — if the primary obligor defaults and the guarantor fails to satisfy the demand. In most US states, the beneficiary can obtain a judgment and levy against personal assets without first suing the primary obligor, provided the guaranty is unconditional. Some jurisdictions offer homestead exemptions and other creditor-protection rules that limit which assets can be reached.\n",{"question":408,"answer":409},"Can a guaranty be limited to a specific dollar amount?","Yes. A limited or capped guaranty restricts the guarantor's maximum liability to a stated dollar amount, a specific transaction, or a defined time period. Limited guaranties are common when a parent company supports a subsidiary's obligations up to a threshold, or when an individual owner negotiates a cap as a condition of providing a personal guaranty. Without explicit cap language, courts in most jurisdictions treat the guaranty as covering the full outstanding obligation plus interest, fees, and enforcement costs.\n",{"question":411,"answer":412},"What is an unconditional guaranty and why do lenders require it?","An unconditional guaranty is one in which the guarantor waives the right to require the beneficiary to first pursue the primary obligor or exhaust collateral before demanding payment from the guarantor. Lenders require unconditional guaranties because they provide immediate, direct recourse without the cost and delay of litigating against the primary obligor first. A conditional guaranty — where the creditor must exhaust remedies first — is significantly weaker security and is rarely accepted by institutional lenders as part of a credit package.\n",{"question":414,"answer":415},"Does a guaranty survive bankruptcy of the primary obligor?","Generally, yes. A properly drafted guaranty typically survives the primary obligor's bankruptcy and remains independently enforceable against the guarantor. The automatic stay in a US bankruptcy proceeding applies to the primary obligor, not to the guarantor, so the beneficiary can generally continue to pursue the guarantor while the primary obligor's bankruptcy is pending. However, if the guarantor itself files for bankruptcy, the automatic stay would apply to the guaranty claim against that guarantor. Specific outcomes depend on jurisdiction and the guaranty's language.\n",{"question":417,"answer":418},"What waivers should a guaranty agreement include?","A standard commercial guaranty typically includes waivers of: the right to require the beneficiary to pursue the primary obligor first; notice of default, demand, and presentment; defenses arising from modification or extension of the underlying obligation; defenses arising from release of collateral or co-obligors; and the statute of limitations defense where permitted by applicable law. Each waiver should be explicit and individually stated, as courts in some jurisdictions require specific language before holding a particular defense waived.\n",{"question":420,"answer":421},"When does a guaranty terminate?","A guaranty terminates when all guaranteed obligations have been fully and finally paid and performed, when a stated expiration date arrives, or — for revocable guaranties — upon written notice by the guarantor. For continuing guaranties, termination by notice typically covers only future obligations, not amounts already outstanding at the time of revocation. Indefeasible payment language is critical: if the primary obligor's payment is subsequently voided as a fraudulent transfer in bankruptcy, the guaranty obligations may revive.\n",{"question":423,"answer":424},"Do I need a lawyer to draft or review a guaranty agreement?","For straightforward transactions with familiar counterparties, a high-quality template is a sound starting point. Legal review is strongly recommended — and in many cases essential — when the guaranty involves significant dollar amounts, a corporate guarantor requiring board authorization, cross-border parties, or an individual personally guaranteeing a large commercial obligation. A 1–2 hour attorney review typically costs $300–$800 and can identify jurisdiction-specific waiver requirements, cap structures, and solvency representations that protect all parties.\n",[426,430,434,438,442,446],{"industry":427,"icon_asset_id":428,"specifics":429},"Commercial Real Estate","industry-real-estate","Landlords routinely require a personal or parent-company guaranty on commercial leases where the tenant entity is thinly capitalized or newly formed, covering rent, operating expenses, and restoration obligations for the full lease term or a defined initial period.",{"industry":431,"icon_asset_id":432,"specifics":433},"Banking and Financial Services","industry-fintech","Lenders require guaranty agreements as a condition of term loans, revolving credit facilities, and letters of credit, particularly for small and mid-market borrowers where the operating entity lacks sufficient standalone credit quality to support the debt.",{"industry":435,"icon_asset_id":436,"specifics":437},"Construction and Infrastructure","industry-construction","General contractors and project owners use completion guaranties and payment guaranties to secure subcontractor performance and ensure material suppliers are paid, reducing lien exposure and bonding costs on large projects.",{"industry":439,"icon_asset_id":440,"specifics":441},"Private Equity and Corporate Finance","industry-investor","Sponsors provide guaranties to support portfolio company credit facilities during acquisition financing, bridge loans, or recapitalizations, with careful attention to downstream liability caps and the guaranty's interaction with intercreditor agreements.",{"industry":443,"icon_asset_id":444,"specifics":445},"Manufacturing and Distribution","industry-manufacturing","Suppliers extending trade credit to distributors or smaller buyers often require a personal guaranty from the principal owner, particularly for new accounts or customers operating near their credit limit.",{"industry":447,"icon_asset_id":448,"specifics":449},"Technology and SaaS","industry-saas","Enterprise software vendors and hosting providers may require a parent-company guaranty when contracting with a newly formed subsidiary or special-purpose vehicle, ensuring payment obligations are backed by an entity with demonstrated financial strength.",[451,454,457,461],{"vs":85,"vs_template_id":452,"summary":453},"promissory-note-D12747","A promissory note creates a direct, primary payment obligation — the signatory is the borrower and owes the debt themselves. A guaranty agreement creates a secondary obligation: the guarantor owes only if the primary obligor defaults. Use a promissory note when the party receiving funds is the one signing; use a guaranty when a creditworthy third party is backing someone else's debt.",{"vs":106,"vs_template_id":455,"summary":456},"indemnification-agreement-D12693","An indemnification agreement obligates one party to compensate another for specified losses, damages, or liabilities — typically arising from a particular act or omission. A guaranty agreement specifically covers a defined financial obligation owed to a third-party beneficiary. Indemnification is backward-looking (covering losses already incurred); a guaranty is forward-looking (covering a future payment obligation if the primary obligor defaults).",{"vs":458,"vs_template_id":459,"summary":460},"Letter of Credit","D{LETTER_OF_CREDIT_ID}","A letter of credit is a bank-issued instrument guaranteeing payment to a beneficiary upon presentation of specified documents, independent of the underlying contract dispute. A guaranty agreement is a direct contractual promise between the guarantor and beneficiary, without a bank intermediary. Letters of credit are faster to call and less subject to dispute, but require a banking relationship and fees; guaranties are more flexible but may require litigation to enforce.",{"vs":229,"vs_template_id":462,"summary":463},"D{PERSONAL_GUARANTEE_ID}","A personal guarantee agreement is a simplified guaranty signed by an individual — typically a business owner — in their personal capacity to back a specific business debt. A financial support agreement regarding guaranty of obligation is a broader, more detailed instrument used for corporate or multi-party transactions requiring representations, warranties, waiver schedules, and detailed default mechanics. For a straightforward owner guaranty on a single loan, a personal guarantee form may suffice; for complex corporate transactions, this fuller agreement is appropriate.",{"use_template":465,"template_plus_review":469,"custom_drafted":473},{"best_for":466,"cost":467,"time":468},"Standard commercial guaranties between known parties for obligations under $100K where both sides have reviewed the terms","Free","30–60 minutes",{"best_for":470,"cost":471,"time":472},"Obligations over $100K, individual personal guaranties, cross-border parties, or corporate guarantors requiring board authorization","$300–$800 (attorney review, 1–2 hours)","1–3 business days",{"best_for":474,"cost":475,"time":476},"Large credit facilities, multi-guarantor structures, acquisition financing, regulated industries, or guaranties with complex cap and step-down schedules","$1,500–$5,000+","1–3 weeks",[478,483,488,493],{"code":479,"name":480,"flag_asset_id":481,"note":482},"us","United States","flag-us","Guaranty enforceability in the US is primarily state-law governed, meaning requirements for consideration, writing, and waiver language vary by state. The Statute of Frauds in every US state requires guaranties to be in writing to be enforceable. California imposes specific disclosure requirements for personal guaranties on commercial loans and restricts certain anti-deficiency waivers. The FTC's Credit Practices Rule limits certain guaranty terms in consumer transactions. For business loans, the SBA requires personal guaranties from all owners holding 20% or more of the borrowing entity.",{"code":484,"name":485,"flag_asset_id":486,"note":487},"ca","Canada","flag-ca","In Canada, guaranty agreements must be in writing under provincial Statute of Frauds legislation. Most provinces require independent legal advice (ILA) for personal guarantors signing guaranties for a related party's debt — lenders routinely require a certificate confirming the guarantor received ILA. Quebec operates under civil law, where the rules governing suretyship (cautionnement) differ from common-law guaranty principles, and specific provisions of the Civil Code of Quebec apply. Guaranties granted by a corporate entity typically require board authorization to be binding.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"uk","United Kingdom","flag-uk","Under English law, a guaranty must be evidenced in writing and signed by the guarantor or their authorized agent to be enforceable under the Statute of Frauds 1677. English courts distinguish carefully between a true guaranty (secondary liability) and an indemnity (primary liability), with different enforcement consequences. The Consumer Credit Act 1974 restricts certain guaranty terms in consumer transactions. Post-Brexit, Northern Ireland and Scotland have distinct procedural nuances; Scottish law treats guaranty obligations (cautionary obligations) with particular formality requirements.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"eu","European Union","flag-eu","EU member states apply national law to guaranty agreements, so requirements vary significantly across France (cautionnement), Germany (Bürgschaft), and Spain (fianza). Many EU jurisdictions impose mandatory form requirements and disclosure obligations, particularly for consumer guarantors. Under German law, guaranties provided by individuals for disproportionately large obligations of a family member may be void on unconscionability grounds if the guarantor lacked independent financial benefit. GDPR applies to personal data of individual guarantors processed during credit assessment and enforcement.",[499,500,501,502,503,504,505,506,507,508,509,510],"promissory-note-D434","indemnification-agreement-D13016","loan-agreement-D417","security-agreement-D915","non-disclosure-agreement-nda-D12692","letter-of-intent_acquisition-of-business-D5197","service-agreement-D12711","independent-contractor-agreement-D160","partnership-agreement-D12551","llc-operating-agreement-D5209","subordination-agreement-D877","demand-letter-D13262",{"emit_how_to":196,"emit_defined_term":196},{"primary_folder":116,"secondary_folder":513,"document_type":514,"industry":515,"business_stage":516,"tags":517,"confidence":523},"guaranties-and-collateral","agreement","general","all-stages",[518,519,520,521,522],"guarantee","contract","legal","guaranty","financial-obligation",0.95,"\u003Ch2>What is a Financial Support Agreement Regarding Guaranty of Obligation?\u003C/h2>\n\u003Cp>A \u003Cstrong>Financial Support Agreement Regarding Guaranty of Obligation\u003C/strong> is a legally binding contract in which a guarantor — an individual, parent company, or other creditworthy entity — formally and irrevocably promises to satisfy the financial obligations of a primary obligor in the event that obligor defaults on a defined debt, lease, or contractual commitment. The agreement creates a secondary liability: the guarantor does not owe anything as long as the primary obligor performs, but becomes directly and immediately obligated upon default. It is one of the most widely used credit-support instruments in commercial finance, real estate, and cross-entity corporate transactions, and is commonly required by lenders, landlords, and contract counterparties before they will extend meaningful credit or enter large commercial commitments.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a properly drafted guaranty agreement, the party extending credit or entering a significant commercial obligation has only one source of recovery: the primary obligor itself. If that entity is undercapitalized, becomes insolvent, or simply defaults, the beneficiary faces a costly and uncertain collection process against a party with limited assets. A signed guaranty agreement changes that equation by giving the beneficiary an independent claim against a creditworthy guarantor — one that survives the primary obligor's bankruptcy and is callable on demand. For the guarantor, a detailed written agreement defines exactly what is being guaranteed, caps exposure where appropriate, and avoids the ambiguity that makes informal financial support commitments unenforceable. For corporate guarantors, a properly authorized and documented agreement protects the signing officers from personal liability claims and satisfies directors' fiduciary duties. This template gives every party a legally sound starting point — clear on scope, waivers, default mechanics, and governing law — that reduces the risk of disputes and accelerates enforcement when the guaranty needs to be called.\u003C/p>\n",1778696377219]