[{"data":1,"prerenderedAt":535},["ShallowReactive",2],{"document-guaranty-D401":3},{"document":4,"label":26,"preview":11,"thumb":27,"thumb600":28,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":29,"breadcrumb":33,"related":40,"customDescModule":188,"customdescription":6,"mdFm":189,"mdProseHtml":534},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":25},"GUARANTY This Guaranty (the \"Guaranty\") is made and effective the [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Creditor\"), 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: [GUARANTOR 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] FOR GOOD CONSIDERATION, and as an inducement for Creditor, which from time to time extends credit to Customer, it is hereby agreed that the Guarantor does hereby guaranty to Creditor the prompt, punctual and full payment of all monies now or hereinafter due Creditor from Customer. TERMS Until termination, this Guaranty is unlimited as to amount or duration and shall remain in full force and effect notwithstanding any extension, compromise, adjustment, forbearance, waiver, release or discharge of any party obligor or guarantor, or release in whole or in part of any security granted for said indebtedness or compromise or adjustment thereto, and the Guarantor waives all notices thereto. The obligations of the Guarantor shall be at the election of Creditor be primary and not necessarily secondary and Creditor shall not be required to exhaust its remedies as against Customer prior to enforcing its rights under this Guaranty against the Guarantor. The Guaranty hereunder shall be unconditional and absolute and the Guarantor waive all rights of subrogation and set-off until all sums under this Guaranty are fully paid. The Guarantor further waives all surety ship defenses or defenses in the nature thereof, generally. In the event payments due under this Guaranty are not punctually paid upon demand, then the Guarantor shall pay all reasonable costs and attorney's fees necessary for collection, and enforcement of this Guaranty.",null,"Guaranty","3",35,"doc","https://templates.business-in-a-box.com/imgs/1000px/guaranty-D401.png","https://templates.business-in-a-box.com/imgs/250px/401.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#401.xml",{"title":6,"description":6},[16,19,22],{"label":17,"url":18},"Finance & Accounting","/templates/finance-accounting/",{"label":20,"url":21},"Business Loans","/templates/business-loan/",{"label":23,"url":24},"Guaranties & Collateral","/templates/guaranties-collateral/","guaranty","Guaranty Template","https://templates.business-in-a-box.com/imgs/400px/401.png","https://templates.business-in-a-box.com/imgs/600px/401.png",[30,16,19,22],{"label":31,"url":32},"Templates","/templates/",[34,35,38],{"label":31,"url":32},{"label":36,"url":37},"Legal Agreements","/templates/business-legal-agreements/",{"label":23,"url":39},"/templates/guaranties-and-collateral/",[41,45,49,53,57,61,65,69,73,77,81,85,89,107,124,138,156,173],{"label":42,"url":43,"thumb":44,"extension":10},"Payment Guaranty","/template/payment-guaranty-D404","https://templates.business-in-a-box.com/imgs/250px/404.png",{"label":46,"url":47,"thumb":48,"extension":10},"Revocation of Guaranty","/template/revocation-of-guaranty-D409","https://templates.business-in-a-box.com/imgs/250px/409.png",{"label":50,"url":51,"thumb":52,"extension":10},"Unlimited Guaranty","/template/unlimited-guaranty-D412","https://templates.business-in-a-box.com/imgs/250px/412.png",{"label":54,"url":55,"thumb":56,"extension":10},"General Continuing Guaranty","/template/general-continuing-guaranty-D399","https://templates.business-in-a-box.com/imgs/250px/399.png",{"label":58,"url":59,"thumb":60,"extension":10},"Guaranty of a Lease","/template/guaranty-of-a-lease-D1177","https://templates.business-in-a-box.com/imgs/250px/1177.png",{"label":62,"url":63,"thumb":64,"extension":10},"Guaranty Agreement","/template/guaranty-agreement-D13699","https://templates.business-in-a-box.com/imgs/250px/13699.png",{"label":66,"url":67,"thumb":68,"extension":10},"Termination of Future Guaranty","/template/termination-of-future-guaranty-D301","https://templates.business-in-a-box.com/imgs/250px/301.png",{"label":70,"url":71,"thumb":72,"extension":10},"Request Release of Personal Guaranty","/template/request-release-of-personal-guaranty-D299","https://templates.business-in-a-box.com/imgs/250px/299.png",{"label":74,"url":75,"thumb":76,"extension":10},"Financial Support Agreement Regarding Guaranty of Obligation","/template/financial-support-agreement-regarding-guaranty-of-obligation-D876","https://templates.business-in-a-box.com/imgs/250px/876.png",{"label":78,"url":79,"thumb":80,"extension":10},"Security Policy","/template/security-policy-D12645","https://templates.business-in-a-box.com/imgs/250px/12645.png",{"label":82,"url":83,"thumb":84,"extension":10},"Content Security Policy","/template/content-security-policy-D13937","https://templates.business-in-a-box.com/imgs/250px/13937.png",{"label":86,"url":87,"thumb":88,"extension":10},"Cyber Security Policy","/template/cyber-security-policy-D12867","https://templates.business-in-a-box.com/imgs/250px/12867.png",{"description":90,"descriptionCustom":6,"label":91,"pages":8,"size":92,"extension":10,"preview":93,"thumb":94,"svgFrame":95,"seoMetadata":96,"parents":97,"keywords":105,"url":106},"PROMISSORY NOTE This Promissory Note (the \"Note\") 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] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. 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",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},[98,100,102],{"label":17,"url":99},"finance-accounting",{"label":20,"url":101},"business-loan",{"label":103,"url":104},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":108,"descriptionCustom":6,"label":109,"pages":110,"size":111,"extension":10,"preview":112,"thumb":113,"svgFrame":114,"seoMetadata":115,"parents":117,"keywords":116,"url":123},"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":116,"description":6},"indemnification agreement",[118,120],{"label":36,"url":119},"business-legal-agreements",{"label":121,"url":122},"Release Agreements","release-agreement","/template/indemnification-agreement-D13016",{"description":125,"descriptionCustom":6,"label":126,"pages":127,"size":111,"extension":10,"preview":128,"thumb":129,"svgFrame":130,"seoMetadata":131,"parents":133,"keywords":132,"url":137},"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":132,"description":6},"loan agreement",[134,135,136],{"label":17,"url":99},{"label":20,"url":101},{"label":20,"url":101},"/template/loan-agreement-D417",{"description":139,"descriptionCustom":6,"label":140,"pages":141,"size":142,"extension":10,"preview":143,"thumb":144,"svgFrame":145,"seoMetadata":146,"parents":147,"keywords":154,"url":155},"COMMERCIAL LEASE AGREEMENT This Lease Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Landlord\"), 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: [TENANT NAME] (the \"Tenant\"), 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] DESCRIPTION OF PREMISES Landlord leases to Tenant the premises located at [address], [city], [state], and described more particularly as follows: [insert legal description]. GRANT OF LEASE Landlord, in consideration of the rents to be paid and the covenants and agreements to be performed and observed by the Tenant, does hereby lease to the Tenant and the Tenant does hereby lease and take from the Landlord the property described in Exhibit \"A\" attached hereto and by reference made a part hereof (the \"Leased Premises\"), together with, as part of the parcel, all improvements located thereon. LEASE TERM Total Term of Lease: The term of this Lease shall begin on the commencement date, as defined in Section b) of this Article 3, and shall terminate on [DATE]. Commencement Date: The \"Commencement Date\" shall mean the date on which the Tenant shall commence to conduct business on the Leased Premised, so long as such date is not in excess of [NUMBER] days subsequent to execution hereof. EXTENSIONS The parties hereto may elect to extend this Agreement upon such terms and conditions as may be agreed upon in writing and signed by the parties at the time of any such extension. DETERMINATION OF RENT The Tenant agrees to pay the Landlord and the Landlord agrees to accept, during the term hereof, at such place as the Landlord shall from time to time direct by notice to the Tenant, rent at the following rates and times: Annual Rent: Annual rent for the term of the Lease shall be [AMOUNT], plus applicable sales tax. Payment of Yearly Rent: The annual rent shall be payable in advance in equal monthly installments of one-twelfth (1/12th) of the total yearly rent, which shall be [AMOUNT], on the first day of each and every calendar month during the term hereof, and prorata for the fractional portion of any month, except that on the first day of the calendar month immediately following the Commencement Date, the Tenant shall also pay to the Landlord rent at the said rate for any portion of the preceding calendar month included in the term of this Lease. Reference to yearly rent hereunder shall not be implied or construed to the effect that this Lease or the obligation to pay rent hereunder is from year to year, or for any term shorter than the existing Lease term, plus any extensions as may be agreed upon. A late fee in the amount of [AMOUNT] shall be assessed if payment is not postmarked or received by Landlord on or before the tenth day of each month. USE OF PROPERTY BY TENANT The Leased Premises may be occupied and used by Tenant exclusively as a [DESCRIBE], to be known as a [DESCRIBE]. Nothing herein shall give Tenant the right to use the property for any other purpose or to sublease, assign, or license the use of the property to any Sub-Tenant, assignee, or licensee, which or who shall use the property for any other use. RESTRICTIONS ON USE Tenant shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of Tenant's business purposes. Tenant shall not keep, use, or sell anything prohibited by any policy of fire insurance covering the demised premises, and shall comply with all requirements of the insurers applicable to the demised premises necessary to keep in force the fire and liability insurance. WASTE, NUISANCE, OR UNLAWFUL ACTIVITY Tenant shall not allow any waste or nuisance on the demised premises, or use or allow the demised premises to be used for any unlawful purpose. DELAY IN DELIVERING POSSESSION This lease agreement shall not be rendered void or voidable by the inability of Landlord to deliver possession to Tenant on the date set forth in Section 3. Landlord shall not be liable to Tenant for any loss or damage suffered by reason of such a delay; provided, however, that Landlord does deliver possession no later than [date]. In the event of a delay in delivering possession, the rent for the period of such delay will be deducted from the total rent due under this lease agreement. No extension of this lease agreement shall result from a delay in delivering possession. SECURITY DEPOSIT The Tenant has deposited with the Landlord the sum of [AMOUNT] as security for the full and faithful performance by the Tenant of all the terms of this lease required to be performed by the Tenant. Such sum shall be returned to the Tenant after the expiration of this lease, provided the Tenant has fully and faithfully carried out all of its terms. In the event of a bona fide sale of the property of which the leased premises are a part, the Landlord shall have the right to transfer the security to the purchaser to be held under the terms of this lease, and the Landlord shall be released from all liability for the return of such security to the Tenant. TAXES Property Taxes: The Tenant shall be liable for all taxes levied against any leasehold interest of the Tenant or personal property and trade fixtures owned or placed by the Tenant in the Leased Premises. Real Estate Taxes: During the continuance of this lease Landlord shall deliver to Tenant a copy of any real estate taxes and assessments against the Leased Property. From and after the Commencement Date, the Tenant shall pay to Landlord not later than [NUMBER] days after the day on which the same may become initially due, all real estate taxes and assessments applicable to the Leased Premises, together with any interest and penalties lawfully imposed thereon as a result of Tenant's late payment thereof, which shall be levied upon the Leased Premises during the term of this Lease. Contest of Taxes: The Tenant, at its own cost and expense, may, if it shall in good faith so desire, contest by appropriate proceedings the amount of any personal or real property tax. The Tenant may, if it shall so desire, endeavor at any time or times, by appropriate proceedings, to obtain a reduction in the assessed valuation of the Leased Premises for tax purposes. In any such event, if the Landlord agrees, at the request of the Tenant, to join with the Tenant at Tenant's expense in said proceedings and the Landlord agrees to sign and deliver such papers and instruments as may be necessary to prosecute such proceedings, the Tenant shall have the right to contest the amount of any such tax and the Tenant shall have the right to withhold payment of any such tax, if the statute under which the Tenant is contesting such tax so permits. Payment of Ordinary Assessments: The Tenant shall pay all assessments, ordinary and extraordinary, attributable to or against the Leased Premises not later than [NUMBER] days after the day on which the same became initially due. The Tenant may take the benefit of any law allowing assessments to be paid in installments and in such event the Tenant shall only be liable for such installments of assessments due during the term hereof. ","Commercial Lease Agreement","19",145,"https://templates.business-in-a-box.com/imgs/1000px/lease-agreement-D1179.png","https://templates.business-in-a-box.com/imgs/250px/1179.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1179.xml",{"title":6,"description":6},[148,151],{"label":149,"url":150},"Real Estate","real-estate-business",{"label":152,"url":153},"Business Checklists","business-checklists","lease agreement","/template/lease-agreement-D1179",{"description":157,"descriptionCustom":6,"label":158,"pages":127,"size":111,"extension":10,"preview":159,"thumb":160,"svgFrame":161,"seoMetadata":162,"parents":164,"keywords":171,"url":172},"AMENDING AGREEMENT This Amending Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [PARTY A NAME], (\"Party A\") which expression shall, unless repugnant to the meaning or context hereof, be deemed to include all permitted successors and assigns) residing at: [YOUR COMPLETE ADDRESS] AND: [PARTY B NAME], (\"Party B\") which expression shall, unless repugnant to the meaning or context hereof, be deemed to include all permitted successors and assigns) residing at: [YOUR COMPLETE ADDRESS] Collectively, Party A and Party B shall be referred to as the \"Parties.\" WHEREAS, the Parties entered into the contract (the \"Contract\") dated [DATE] for the purpose of [PURPOSE]. WHEREAS, the Parties desire to amend the Contract on the terms and conditions set forth in this Amending Agreement (the \"Agreement\"). WHEREAS, this Agreement is the [NUMBER] amendment to the Contract. Now, therefore, the Parties agree to amend their obligations in the existing Contract and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and the Parties agree to keep, perform and fulfill the promises, conditions and agreements below: AMENDMENTS The Contract is amended as follows: [SPECIFY THE AMENDMENT] NO OTHER CHANGES Except as otherwise expressly provided in this Agreement, all of the terms and conditions of the Contract remain unchanged and in full force and effect. ","Amending Agreement","https://templates.business-in-a-box.com/imgs/1000px/amending-agreement-D13245.png","https://templates.business-in-a-box.com/imgs/250px/13245.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13245.xml",{"title":163,"description":6},"amending agreement",[165,168],{"label":166,"url":167},"Business Plan Kit","business-plan-kit",{"label":169,"url":170},"Business Procedures","business-procedures","security agreement","/template/security-agreement-D13245",{"description":174,"descriptionCustom":6,"label":175,"pages":176,"size":111,"extension":10,"preview":177,"thumb":178,"svgFrame":179,"seoMetadata":180,"parents":182,"keywords":181,"url":187},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: REQUEST DELAY IN PROVIDING FINANCIAL STATEMENT Dear [Contact name], According to the terms and conditions of our credit facility, we are required to provide [BANK] with our [ANNUAL/QUARTERLY] financial statements within [NUMBER] days following our fiscal year end ([DATE OF YEAR END]).","Request Delay to Present Financial Statement","1","https://templates.business-in-a-box.com/imgs/1000px/request-delay-to-present-financial-statement-D296.png","https://templates.business-in-a-box.com/imgs/250px/296.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#296.xml",{"title":181,"description":6},"request delay to present financial statement",[183,184],{"label":17,"url":99},{"label":185,"url":186},"Business Banking","business-banking","/template/request-delay-to-present-financial-statement-D296",false,{"seo":190,"reviewer":201,"legal_disclaimer":205,"quick_facts":206,"at_a_glance":208,"personas":212,"variants":237,"glossary":263,"clauses":297,"how_to_fill":348,"common_mistakes":389,"faqs":414,"industries":442,"comparisons":459,"diy_vs_lawyer":475,"jurisdictions":488,"related_template_ids_curated":509,"schema":522,"classification":523},{"meta_title":191,"meta_description":192,"primary_keyword":193,"secondary_keywords":194},"Guaranty Template — Free Word Download (Free Word)","Free guaranty template for securing loans, leases, and contracts. Covers guarantor obligations, conditions, and limits. Used in 190+ countries. Free Word and PDF download.","guaranty template",[195,196,197,198,199,200],"personal guaranty template","guaranty contract template free","business guaranty template word","continuing guaranty template","guaranty of payment template","commercial guaranty template",{"name":202,"credential":203,"reviewed_date":204},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":207,"legal_review_recommended":205,"signature_required":205,"notarization_required":188},"advanced",{"what_it_is":209,"when_you_need_it":210,"whats_inside":211},"A Guaranty is a legally binding contract in which one party (the guarantor) agrees to be personally or corporately responsible for the debt, obligation, or performance of a second party (the principal debtor) if that party defaults. This free Word download gives you a structured, attorney-reviewed starting point you can edit online and export as PDF for use alongside loans, leases, credit facilities, and commercial contracts.\n","Use it whenever a lender, landlord, or counterparty requires a creditworthy third party to backstop an obligation — most commonly when a borrower has limited credit history, when a newly formed entity lacks a track record, or when a principal creditor needs additional security before extending terms.\n","Party identification, the guaranteed obligation and its scope, conditions triggering the guarantor's liability, payment and performance obligations, waivers of defenses, limitations on liability, representations and warranties, default and demand provisions, and governing law.\n",[213,217,221,225,229,233],{"title":214,"use_case":215,"icon_asset_id":216},"Small business owners","Personally guaranteeing a commercial lease or business loan for an LLC or corporation","persona-small-business-owner",{"title":218,"use_case":219,"icon_asset_id":220},"Commercial landlords","Requiring a principal or parent company to back a tenant's lease obligations","persona-landlord",{"title":222,"use_case":223,"icon_asset_id":224},"Lenders and banks","Securing personal or corporate guaranties alongside business loan documentation","persona-lender",{"title":226,"use_case":227,"icon_asset_id":228},"Startup founders","Providing a personal guaranty to unlock financing before the company establishes credit","persona-startup-founder",{"title":230,"use_case":231,"icon_asset_id":232},"Corporate counsel","Drafting parent company guaranties to support subsidiary obligations in commercial deals","persona-corporate-counsel",{"title":234,"use_case":235,"icon_asset_id":236},"Franchise operators","Executing a personal guaranty as required by a franchisor under a franchise agreement","persona-franchise-applicant",[238,242,246,250,253,256,259],{"situation":239,"recommended_template":240,"slug":241},"Individual guaranteeing a business loan or credit line","Personal Guaranty","request-release-of-personal-guaranty-D299",{"situation":243,"recommended_template":244,"slug":245},"Parent company backing a subsidiary's contractual obligations","Corporate Guaranty","guaranty-D401",{"situation":247,"recommended_template":248,"slug":249},"Guaranty covering all present and future obligations over time","Continuing Guaranty","general-continuing-guaranty-D399",{"situation":251,"recommended_template":252,"slug":245},"Guarantor's liability capped at a specific dollar amount","Limited Guaranty",{"situation":254,"recommended_template":255,"slug":245},"Guarantor liable only after creditor has exhausted remedies against the debtor","Conditional Guaranty",{"situation":257,"recommended_template":258,"slug":245},"Multiple guarantors each fully liable for the entire obligation","Joint and Several Guaranty",{"situation":260,"recommended_template":261,"slug":262},"Guaranty securing a commercial real estate lease","Lease Guaranty","guaranty-of-a-lease-D1177",[264,267,270,273,275,278,280,283,286,289,292,295],{"term":265,"definition":266},"Guarantor","The party who promises to fulfill the principal debtor's obligation if the debtor defaults.",{"term":268,"definition":269},"Principal Debtor","The primary party responsible for the underlying obligation — the borrower, tenant, or contracting party whose performance is being guaranteed.",{"term":271,"definition":272},"Obligee / Creditor","The party in whose favor the guaranty is given — the lender, landlord, or counterparty who receives the benefit of the guarantor's promise.",{"term":248,"definition":274},"A guaranty that covers all obligations of the principal debtor arising over a period of time, not just a single specified transaction.",{"term":276,"definition":277},"Absolute Guaranty","A guaranty under which the guarantor is immediately liable upon the debtor's default, without any requirement that the creditor first pursue the debtor.",{"term":255,"definition":279},"A guaranty that becomes enforceable only after the creditor has taken specified steps — such as exhausting remedies against the principal debtor.",{"term":281,"definition":282},"Joint and Several Liability","A liability structure in which each of multiple guarantors is individually responsible for the full amount of the obligation, not just their proportionate share.",{"term":284,"definition":285},"Subrogation","The right of a guarantor who has paid the creditor to step into the creditor's position and recover that amount from the principal debtor.",{"term":287,"definition":288},"Waiver of Defenses","A clause in which the guarantor surrenders specific legal defenses — such as notice of default, changes to the underlying agreement, or the creditor's release of collateral — that might otherwise reduce or void the guaranty.",{"term":290,"definition":291},"Consideration","The benefit received by the guarantor in exchange for the guaranty — such as the creditor extending credit or entering into a contract with the principal debtor.",{"term":293,"definition":294},"Indemnity","An obligation to compensate another party for a loss or liability; closely related to a guaranty but generally broader and not dependent on the principal debtor's default.",{"term":252,"definition":296},"A guaranty capped at a specified dollar amount or restricted to a defined category of obligations, limiting the guarantor's maximum exposure.",[298,303,308,313,318,323,328,333,338,343],{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Parties and Recitals","Identifies the guarantor, principal debtor, and obligee (creditor) by legal name, and sets out the background — the underlying transaction or obligation that the guaranty supports.","This Guaranty is made as of [DATE] by [GUARANTOR FULL LEGAL NAME] ('Guarantor') in favor of [CREDITOR FULL LEGAL NAME] ('Creditor'). [PRINCIPAL DEBTOR NAME] ('Debtor') has entered into [DESCRIPTION OF UNDERLYING OBLIGATION] dated [DATE] (the 'Obligation').","Using a trade name or DBA instead of the guarantor's or creditor's full legal name. An enforcement action filed against the wrong entity name can be dismissed on procedural grounds.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Guaranty of Payment or Performance","States whether the guarantor is guaranteeing payment of money, performance of contractual duties, or both — and makes clear this is an absolute, unconditional obligation.","Guarantor unconditionally and irrevocably guarantees to Creditor the full and prompt payment when due of all amounts owed by Debtor under the Obligation, and the faithful performance of all terms, covenants, and conditions therein.","Failing to specify whether the guaranty covers payment, performance, or both. A guaranty of performance without a payment obligation may not allow the creditor to recover monetary damages directly.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Scope of Guaranteed Obligations","Defines exactly which obligations are covered — a single transaction, all present and future obligations, or a capped subset — preventing disputes about what the guarantor agreed to back.","This Guaranty covers all obligations of Debtor to Creditor arising under the Obligation, including principal, interest, fees, costs, and attorneys' fees, whether now existing or hereafter arising, up to a maximum aggregate amount of $[AMOUNT] [if limited].","Using a continuing guaranty form when only a single transaction was intended. A continuing guaranty exposes the guarantor to future obligations they may not have agreed to back.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Absolute and Unconditional Nature","Confirms that the guaranty is enforceable regardless of changes to the underlying obligation, the debtor's insolvency, or the creditor's failure to pursue other remedies first.","Guarantor's obligations hereunder are absolute and unconditional and shall not be affected by (a) any modification or amendment of the Obligation; (b) any insolvency, bankruptcy, or reorganization of Debtor; or (c) the release or substitution of any collateral.","Omitting the unconditional clause and then having the guarantor argue the creditor must first sue the debtor. Courts in most jurisdictions require explicit waiver language to prevent this defense.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Waiver of Defenses and Notice","The guarantor expressly waives rights that would otherwise limit enforceability — including notice of default, presentment, demand, protest, and the right to require the creditor to pursue the debtor first.","Guarantor waives (a) notice of acceptance of this Guaranty; (b) notice of the creation or existence of the Obligation; (c) notice of default by Debtor; (d) presentment, demand for payment, and protest; and (e) any requirement that Creditor first exhaust remedies against Debtor or any collateral.","Omitting individual waiver items and using a general 'waives all defenses' catch-all. Courts often require specific enumeration of each waived defense; a generic waiver may be narrowly construed.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Representations and Warranties of Guarantor","The guarantor confirms they have authority to sign, that the guaranty does not conflict with other obligations, and that they have reviewed the underlying transaction and are financially capable of performing.","Guarantor represents and warrants that: (a) Guarantor has full legal capacity to execute this Guaranty; (b) this Guaranty constitutes the legal, valid, and binding obligation of Guarantor; and (c) execution does not violate any agreement to which Guarantor is a party.","Skipping the representations block entirely. Without them, the guarantor can later claim they lacked authority or were misled about the terms of the underlying obligation.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Default and Demand Provisions","Defines what triggers the guarantor's liability — typically the debtor's failure to pay or perform — and sets out how and when the creditor can make a demand on the guarantor.","Upon the occurrence of a Default under the Obligation, Creditor may, at its option, make demand on Guarantor for payment or performance without prior demand on or notice to Debtor. Guarantor shall pay all amounts demanded within [NUMBER] business days of receipt of written demand.","Requiring the creditor to give the guarantor a cure period equal to the debtor's cure period. This delays enforcement and is unnecessary — guarantors are secondary obligors who have already accepted liability.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Subrogation and Contribution Rights","Preserves the guarantor's right to recover from the debtor after paying the creditor, but subordinates that right to the creditor's full recovery to prevent the guarantor from competing with the creditor for the debtor's assets.","Upon full payment of the Guaranteed Obligations, Guarantor shall be subrogated to the rights of Creditor against Debtor; provided, however, that Guarantor shall not exercise any such right until all obligations of Debtor to Creditor have been fully and finally satisfied.","Allowing the guarantor to exercise subrogation rights before the creditor is fully paid. If the debtor is insolvent, a guarantor exercising subrogation prematurely competes with the creditor for limited assets.",{"name":339,"plain_english":340,"sample_language":341,"common_mistake":342},"Limitation on Liability","If the guaranty is limited rather than absolute, states the maximum dollar amount or category of obligations the guarantor is responsible for — and, if applicable, carves out obligations the guaranty does not cover.","Notwithstanding any other provision hereof, Guarantor's aggregate liability under this Guaranty shall not exceed $[MAXIMUM AMOUNT]. This limitation does not apply to costs of enforcement, including reasonable attorneys' fees, incurred by Creditor.","Capping the guaranty at the original principal amount without accounting for interest, fees, and enforcement costs. The cap is often effectively lower than intended once these additions are excluded.",{"name":344,"plain_english":345,"sample_language":346,"common_mistake":347},"Governing Law, Jurisdiction, and Miscellaneous","Specifies which state or country's law governs the guaranty, where disputes will be resolved, and includes standard boilerplate — severability, entire agreement, amendment requirements, and notice provisions.","This Guaranty shall be governed by and construed in accordance with the laws of [STATE/COUNTRY], without regard to conflict-of-laws principles. Guarantor irrevocably consents to the jurisdiction of the courts of [STATE/COUNTRY] for any action arising hereunder. Notices shall be in writing and delivered to the addresses set forth above.","Choosing a governing law state solely based on the lender's home state, without confirming that state's guaranty enforcement rules are favorable. Some states impose additional notice requirements or anti-deficiency protections that limit recovery.",[349,354,359,364,369,374,379,384],{"step":350,"title":351,"description":352,"tip":353},1,"Identify all parties with full legal names","Enter the guarantor's full legal name (individual or entity), the principal debtor's registered name, and the creditor's legal name in the parties block. For individual guarantors, include their address and, where required, their spousal consent acknowledgment.","For LLC or corporate guarantors, confirm the entity has authority to issue a guaranty — check the operating agreement or board resolutions before signing.",{"step":355,"title":356,"description":357,"tip":358},2,"Define the underlying obligation precisely","Reference the loan agreement, lease, or contract being guaranteed by its title, date, and parties. Attach a copy as an exhibit if the guaranty is part of a larger transaction package.","Use the exact document title and execution date from the underlying agreement — inconsistencies in naming give guarantors grounds to dispute which obligation is covered.",{"step":360,"title":361,"description":362,"tip":363},3,"Choose absolute or conditional, and continuing or limited","Decide whether the guaranty is absolute (creditor can demand directly) or conditional (must pursue debtor first), and whether it covers all present and future obligations (continuing) or a single transaction. Mark the appropriate provisions and delete alternatives.","Lenders almost always require an absolute, unconditional, continuing guaranty. Landlords frequently accept a limited guaranty capped at 12–24 months' rent for creditworthy tenants.",{"step":365,"title":366,"description":367,"tip":368},4,"Set the liability cap if using a limited guaranty","Enter the maximum dollar amount the guarantor can be required to pay. Confirm this amount includes interest and fees, or explicitly state it applies to principal only and that enforcement costs are additional.","Negotiate the cap amount before execution — once signed, courts rarely rewrite a clear numerical limit, even if the creditor's actual loss exceeds it.",{"step":370,"title":371,"description":372,"tip":373},5,"Review and enumerate the waivers of defenses","Work through each waiver provision and confirm each applies to the transaction. Do not delete waivers without consulting counsel — removing even one standard waiver can give the guarantor a defense that voids enforcement.","If the guarantor is a spouse or domestic partner of the principal debtor, check whether your jurisdiction requires a separate spousal guaranty or consent to be enforceable against marital assets.",{"step":375,"title":376,"description":377,"tip":378},6,"Set the default trigger and demand mechanics","Specify the exact event that triggers the guarantor's liability — typically the debtor's failure to pay by a specific date — and the number of business days the guarantor has to respond to a written demand.","Three to five business days for demand response is standard in commercial lending. Longer periods unnecessarily delay the creditor's ability to enforce.",{"step":380,"title":381,"description":382,"tip":383},7,"Confirm governing law and jurisdiction","Select the governing law state or country and the forum for dispute resolution. Confirm that the chosen jurisdiction's laws do not impose notice or exhaustion requirements that conflict with the unconditional clause.","In transactions involving real property, use the jurisdiction where the property is located — anti-deficiency laws are property-specific and cannot be contracted around in most US states.",{"step":385,"title":386,"description":387,"tip":388},8,"Execute with witnesses or notarization if required","Have the guarantor sign in the presence of a witness or notary if required by the governing jurisdiction or the transaction documents. Lenders frequently require notarization on personal guaranties as a condition of closing.","Obtain a spousal consent signature where community-property rules apply — California, Texas, Arizona, and seven other US states treat marital assets as shared, and a guaranty without spousal consent may be unenforceable against those assets.",[390,394,398,402,406,410],{"mistake":391,"why_it_matters":392,"fix":393},"Using a continuing guaranty when only one transaction was intended","A continuing guaranty covers all present and future obligations, meaning the guarantor remains liable for new loans or extensions made years later without their direct involvement.","If the guaranty is meant to cover a single transaction, expressly limit its scope to that specific obligation by title, date, and dollar amount, and include a termination clause.",{"mistake":395,"why_it_matters":396,"fix":397},"Omitting spousal consent in community-property states","In the nine US community-property states, a personal guaranty signed without the non-guarantor spouse's consent may be unenforceable against jointly held marital assets — potentially the guarantor's primary source of recovery.","Include a spousal consent block and have the guarantor's spouse or domestic partner sign it whenever the transaction is governed by California, Texas, Arizona, Nevada, Idaho, Louisiana, New Mexico, Washington, or Wisconsin law.",{"mistake":399,"why_it_matters":400,"fix":401},"Failing to enumerate specific waivers of defenses","A generic 'waives all defenses' clause is regularly construed narrowly by courts, allowing guarantors to raise defenses — such as lack of notice or creditor modification of the underlying loan — that the parties intended to waive.","List each waived defense individually: notice of default, presentment, demand, protest, modification of the underlying obligation, release of collateral, and the requirement to first exhaust remedies against the debtor.",{"mistake":403,"why_it_matters":404,"fix":405},"Setting a liability cap that excludes interest and enforcement costs","A cap stated as 'the principal amount of the loan' effectively shrinks as interest accrues, leaving the creditor underprotected and creating disputes about what the cap was meant to include.","Define whether the cap covers principal only, principal plus interest, or the full outstanding balance including fees — and state explicitly whether attorneys' fees and enforcement costs are inside or outside the cap.",{"mistake":407,"why_it_matters":408,"fix":409},"Signing after the underlying obligation is already in default","A guaranty signed after the debtor has already defaulted may lack consideration — the creditor gave nothing new in exchange for the guaranty — potentially voiding the guarantor's obligation.","Execute the guaranty simultaneously with or before the underlying loan, lease, or contract closes. If post-closing execution is necessary, document the fresh consideration being provided by the creditor.",{"mistake":411,"why_it_matters":412,"fix":413},"Not attaching the underlying obligation as an exhibit","If the guaranty references a loan agreement or lease without attaching it, disputes arise over which version of that document the guaranty covers — especially if the underlying agreement is later amended.","Attach a copy of the underlying obligation as Exhibit A to the guaranty at execution, and include a clause confirming the guaranty covers that specific version and any amendments the guarantor consents to in writing.",[415,418,421,424,427,430,433,436,439],{"question":416,"answer":417},"What is a guaranty?","A guaranty is a legally binding contract in which a guarantor agrees to be responsible for the debt or obligations of a principal debtor if that debtor fails to pay or perform. It gives the creditor a second source of recovery — the guarantor's personal or corporate assets — beyond the debtor alone. Guaranties are commonly required alongside business loans, commercial leases, and credit facilities where the primary obligor lacks sufficient credit standing on its own.\n",{"question":419,"answer":420},"What is the difference between a guaranty and a surety bond?","Both provide a secondary source of payment or performance security, but they work differently. A surety bond is a three-party arrangement issued by a licensed insurance company (the surety) guaranteeing a principal's performance to an obligee — commonly used in construction and government contracting. A guaranty is a two-party promise from an individual or entity directly to the creditor. Surety bonds typically require underwriting and a premium; personal guaranties do not.\n",{"question":422,"answer":423},"What is the difference between a guaranty of payment and a guaranty of performance?","A guaranty of payment obligates the guarantor to pay money owed by the debtor — it is triggered by a monetary default and allows the creditor to demand payment directly. A guaranty of performance obligates the guarantor to ensure the debtor completes specific contractual duties, such as delivering goods or completing construction. Many commercial guaranties cover both payment and performance to give the creditor maximum protection.\n",{"question":425,"answer":426},"Can a guaranty be limited in amount?","Yes. A limited guaranty caps the guarantor's maximum liability at a specified dollar amount. This is common in commercial real estate leases where a landlord accepts a guaranty capped at 12–24 months' rent rather than the full lease term value. The cap can apply to principal only or to the total exposure including interest and fees — the precise definition matters significantly and should be stated explicitly in the agreement.\n",{"question":428,"answer":429},"What is a continuing guaranty?","A continuing guaranty covers all obligations of the principal debtor to the creditor arising over a period of time, not just a single defined transaction. Banks and institutional lenders frequently require continuing guaranties so that the guaranty automatically covers future advances, renewals, and modifications without requiring a new guaranty each time. Guarantors should understand they remain liable for obligations they may not know about unless the continuing guaranty is formally terminated.\n",{"question":431,"answer":432},"When can a guarantor be released from liability?","A guarantor can typically be released when the underlying obligation is fully paid and satisfied, when the creditor executes a written release, or when the guaranty itself contains a termination provision — such as a right to terminate on 30 days' written notice for future obligations under a continuing guaranty. Certain acts by the creditor — materially altering the underlying obligation without the guarantor's consent, or releasing collateral — may also release the guarantor in jurisdictions that have not adopted the waiver-of-defenses standard.\n",{"question":434,"answer":435},"Does a personal guaranty expose the guarantor's personal assets?","Yes. A personal guaranty made by an individual pierces the corporate veil and allows the creditor to pursue the guarantor's personal bank accounts, real estate, investments, and other assets to satisfy the obligation. In community-property states, a guaranty signed without spousal consent may not reach jointly held marital assets. A corporate guaranty, by contrast, limits exposure to the signing entity's assets — not those of its shareholders or officers individually.\n",{"question":437,"answer":438},"Is notarization required for a guaranty to be enforceable?","In most US jurisdictions, notarization is not legally required for a guaranty to be enforceable. However, many lenders and landlords require it as a practical matter — particularly for personal guaranties — because it verifies the guarantor's identity, reduces fraud risk, and strengthens enforcement if the guarantor later claims they did not sign. Some states require notarization when the guaranty is recorded or when it secures a real estate transaction.\n",{"question":440,"answer":441},"Do I need a lawyer to draft a guaranty?","For straightforward commercial guaranties — such as a personal guaranty supporting a business lease or small business loan — a well-drafted template reviewed by counsel is generally sufficient. Legal review becomes important when the guaranty covers large sums, spans multiple jurisdictions, involves complex waiver provisions, or when the guarantor is an entity requiring board authorization. A 1–2 hour attorney review typically costs $300–$700 and is warranted for any guaranty exceeding $100,000 in exposure.\n",[443,447,451,455],{"industry":444,"icon_asset_id":445,"specifics":446},"Commercial Real Estate","industry-real-estate","Landlords routinely require personal or corporate guaranties from principals of tenant LLCs, often capped at 12–24 months of base rent with a burn-down provision tied to lease performance.",{"industry":448,"icon_asset_id":449,"specifics":450},"Financial Services and Lending","industry-fintech","Banks and SBA lenders require unconditional personal guaranties from all individuals owning 20% or more of a borrowing entity as a standard condition of any business loan.",{"industry":452,"icon_asset_id":453,"specifics":454},"Construction and Contracting","industry-construction","Owners and general contractors require performance guaranties from subcontractors or their principals when subcontractor financial strength is insufficient for the contract value at risk.",{"industry":456,"icon_asset_id":457,"specifics":458},"Franchise and Retail","industry-retail","Franchise agreements almost universally require the franchisee's individual principals to personally guarantee the franchise agreement, lease obligations, and any franchisor-provided financing.",[460,464,468,472],{"vs":461,"vs_template_id":462,"summary":463},"Surety Bond","D{SURETY_BOND_ID}","A surety bond is a three-party arrangement issued by a licensed insurance company guaranteeing a principal's performance to an obligee, commonly used in construction and government contracting. A guaranty is a direct promise from the guarantor to the creditor with no insurance company involved and no premium required. Surety bonds are underwritten based on the principal's financials; guaranties depend entirely on the guarantor's creditworthiness.",{"vs":465,"vs_template_id":466,"summary":467},"Indemnity Agreement","indemnification-agreement-D13304","An indemnity agreement broadly obligates one party to compensate another for losses, damages, or liabilities — it does not depend on a third-party debtor defaulting. A guaranty is specifically triggered by the principal debtor's failure to pay or perform. Indemnity is generally broader; guaranty is narrower and tied directly to a specific underlying obligation.",{"vs":469,"vs_template_id":470,"summary":471},"Letter of Credit","D{LETTER_OF_CREDIT_ID}","A letter of credit is a bank-issued instrument that guarantees payment to a beneficiary upon presentation of specified documents, independent of the applicant's solvency. A guaranty is a contractual promise directly between the guarantor and creditor and relies on the guarantor's personal or corporate assets. Letters of credit are more liquid and certain for international transactions; guaranties are simpler and more common in domestic lending and leasing.",{"vs":91,"vs_template_id":473,"summary":474},"promissory-note-D168","A promissory note is a direct promise by the borrower to repay a debt — it is the primary obligation. A guaranty is a secondary obligation in which the guarantor promises to pay if the primary obligor (the note maker) does not. Both documents are often executed together in a lending transaction, with the note governing the debt and the guaranty providing the creditor a backup source of recovery.",{"use_template":476,"template_plus_review":480,"custom_drafted":484},{"best_for":477,"cost":478,"time":479},"Standard personal guaranties for commercial leases or small business loans under $100,000","Free","20–30 minutes",{"best_for":481,"cost":482,"time":483},"Guaranties over $100,000, multi-party guaranties, or transactions involving community-property or cross-border issues","$300–$700","1–3 days",{"best_for":485,"cost":486,"time":487},"Complex corporate guaranties, large credit facilities, regulated lenders, or guaranties requiring coordination with intercreditor agreements","$1,500–$5,000+","1–2 weeks",[489,494,499,504],{"code":490,"name":491,"flag_asset_id":492,"note":493},"us","United States","flag-us","Guaranty law is primarily state-governed in the US, with significant variation in enforceability of waivers and anti-deficiency protections. In community-property states — California, Texas, Arizona, Nevada, Idaho, Louisiana, New Mexico, Washington, and Wisconsin — spousal consent is critical for a guaranty to reach marital assets. California's anti-deficiency statutes limit certain lender remedies after foreclosure even when a guaranty exists. The Statute of Frauds requires guaranties to be in writing in every US state.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"ca","Canada","flag-ca","In Canada, guaranties are governed by provincial law and the Statute of Frauds, which requires them to be in writing and signed. Most provinces require independent legal advice (ILA) for personal guarantors who are not shareholders or directors of the principal debtor — without documented ILA, courts may set aside the guaranty. Ontario's Guaranties Act and British Columbia's Law and Equity Act impose additional requirements, including notice to the guarantor of material changes to the underlying obligation.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"uk","United Kingdom","flag-uk","Under the UK Statute of Frauds 1677, a guaranty must be evidenced in writing and signed by the guarantor to be enforceable. UK courts distinguish between guaranties (secondary obligations) and indemnities (primary obligations) — the distinction affects enforceability when the underlying obligation is void or unenforceable. Regulated consumer guaranties are subject to the Consumer Credit Act 1974. Lenders routinely obtain independent legal advice evidence to guard against undue influence claims, particularly where guarantors are spouses or domestic partners of the principal debtor.",{"code":505,"name":506,"flag_asset_id":507,"note":508},"eu","European Union","flag-eu","Guaranty law in the EU is not harmonized — requirements vary significantly by member state. France, Germany, and Spain each have distinct formality requirements: French law requires the guarantor to handwrite a specific statement of the guaranteed amount; German law distinguishes between Bürgschaft (guaranty) and Schuldbeitritt (assumption of debt) with different consequences; Spanish courts apply proportionality limits to guarantor liability. Consumer protection directives may restrict enforcement of personal guaranties given by individuals outside a trade or profession, particularly where the creditor did not explain the risks.",[510,511,512,513,514,515,516,517,518,519,520,521],"promissory-note-D434","indemnification-agreement-D13016","loan-agreement-D417","lease-agreement-D1179","security-agreement-D13245","request-delay-to-present-financial-statement-D296","demand-letter-D13262","intercreditor-agreement-D13244","letter-of-intent_acquisition-of-business-D5197","confidentiality-agreement-nda-D12692","independent-contractor-agreement-D160","partnership-agreement-D12551",{"emit_how_to":205,"emit_defined_term":205},{"primary_folder":119,"secondary_folder":524,"document_type":525,"industry":526,"business_stage":527,"tags":528,"confidence":533},"guaranties-and-collateral","agreement","general","all-stages",[529,530,531,25,532],"legal","contract","liability","collateral",0.95,"\u003Ch2>What is a Guaranty?\u003C/h2>\n\u003Cp>A \u003Cstrong>Guaranty\u003C/strong> is a legally binding contract in which a guarantor — an individual or entity — agrees to assume responsibility for the debt, obligation, or performance of a principal debtor if that debtor defaults. Unlike a co-signer arrangement, a properly drafted guaranty creates a standalone secondary obligation: the creditor can demand payment or performance from the guarantor directly, without first exhausting remedies against the debtor, provided the guaranty waives that requirement. Guaranties are foundational instruments in commercial lending, commercial real estate leasing, franchise agreements, and any transaction where the primary obligor's creditworthiness alone is insufficient to satisfy the creditor's risk threshold.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a signed guaranty, a creditor who extends a loan or lease to an entity with limited credit history has only that entity's assets as recourse — and newly formed LLCs and corporations often hold little of value. When the debtor defaults, the creditor is left pursuing an undercapitalized shell while the principals' personal assets remain untouched. A properly executed guaranty closes that gap by binding the guarantor's personal or corporate assets to the obligation from day one. For guarantors, a clearly drafted document is equally important: a vague or overbroad guaranty can expose a signatory to obligations they never intended to back, including future loans and amendments made without their knowledge. This template gives both sides a precise, enforceable starting point — covering scope, waivers, demand mechanics, and governing law — so the transaction can close with confidence on both sides of the table.\u003C/p>\n",1781186014588]