[{"data":1,"prerenderedAt":535},["ShallowReactive",2],{"document-payment-guaranty-D404":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":183,"customdescription":6,"mdFm":184,"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},"PAYMENT GUARANTY This Payment Guaranty (the \"Guaranty\") is made and effective the [DATE], BETWEEN: [CREDITOR NAME] (the \"Creditor\"), a corporation organized and existing under the laws of the [STATE/PROVINCE], with its head office located at: AND: [GUARANTOR NAME] (the \"Guarantor\"), a corporation organized and existing under the laws of the [STATE/PROVINCE], with its head office located at: Recitals This Guaranty is a continuing guaranty given by the Guarantor to Creditor. WHEREAS, [name of DEBtor] (\"Debtor\") is simultaneously entering into a set of agreements on the date hereof (the \"Agreements\") with Creditor or its affiliates; and WHEREAS, Guarantor for their own interests wish to induce Creditor to enter into the Agreements; and WHEREAS, Creditor has advised Guarantor that Creditor will not enter into the Agreements unless, inter alia, Guarantor unconditionally guarantees pursuant hereto the performance of all of Debtor's obligations arising out of or in connection with the Agreements; NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: The Guaranty Guarantor acknowledges to be aware of the terms and conditions of the Agreements, and does hereby irrevocably and unconditionally guaranty, without offset or deduction, jointly and severally, the due and punctual payment when due by Debtor of all moneys now or hereafter due Creditor pursuant to the Agreements (collectively, \"Payment Obligations\") and the prompt and proper performance by Debtor of all of its obligations to Creditor pursuant to the Agreements, other than those relating to the payment of money (collectively, \"Non-Payment Obligations\") (all such Payment Obligations and Non-Payment Obligations being hereinafter collectively referred to as the \"Obligations\"). Guarantor agrees that in the event that Debtor fails to pay any Payment Obligation or perform any Non-Payment Obligation for any reason whatsoever (including, without limitation, the liquidation, insolvency, bankruptcy, reorganization, arrangement or readjustment of, or other similar proceedings affecting the status, existence, assets or obligations of, Debtor, or the disaffirmance with respect to Debtor of any of the Agreements), Guarantor will promptly pay or perform, as the case may be, such Obligations upon demand of Creditor. To the fullest extent permitted by law, the obligations of Guarantor hereunder shall not be affected by (a) any lack in the genuineness, validity, regularity or enforceability of any of the Debtor's obligations under the Agreements; (b) any direction of application by Debtor or any other party; (c) any other continuing or other guaranty or undertaking or the taking or releasing by Creditor of any security or any further security in connection with the Agreements; (d) any payment on or in reduction of any other guaranty or undertaking; or (e) any dissolution, termination, or increase, decrease or changes of personnel of Debtor. Waiver of Defenses Guarantor waives any right to require Creditor to (a) proceed against Debtor; (b) proceed against or exhaust any security held from Debtor; or (c) pursue any other remedy in Creditor's power whatsoever. Guarantor waives any defense based on or arising out of any defense of Debtor other than payment in full and performance of the Obligations, including without limitation any defense based on or arising out of the disability of Debtor, the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of Debtor other than payment in full and performance of the Obligations. Creditor may, at its election, foreclose on any security held by Creditor by one or more judicial sales, whether or not every aspect of any such sale is commercially reasonable, or exercise any other right or remedy Creditor may have against Debtor, or any security, without affecting or impairing in any way the liability of Guarantor under this Guaranty, except to the extent the Obligations have been paid or performed. Guarantor waives any defense arising out of such an election by Creditor, even if the election operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy of Guarantor against Debtor or any security. Guarantor waives all presentments, demands for performance, notices of protest, notices of dishonor and notices of acceptances of this Guaranty. Guarantor assumes all responsibility for keeping informed of Debtor's financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment or nonperformance of the Obligations and the nature, scope, and extent of the risks that Guarantor assumes and incurs under this Guaranty, and agrees that Creditor shall have no duty to advise Guarantor of information known to it regarding those circumstances or risks. Guaranty Absolute and Continuing To the fullest extent permitted by law, Guarantor agrees that its obligations hereunder are absolute and shall not be affected by (a) any failure of Creditor, inadvertent or deliberate, to protect, secure, insure, perfect or realize upon, or any negligence by Creditor with respect to, any collateral, security interest or lien which may secure any Obligations or the obligations of Guarantor hereunder, (b) any amendment, waiver, renewal, compromise, extension, acceleration or other modification of the terms of the Agreements or (c) any other circumstances which might otherwise constitute a legal or equitable defense to or discharge of the obligation of a surety or a guarantor. This is a continuing guaranty of payment with respect to the Payment Obligations and not of collection. A separate action or actions may be brought and prosecuted against Guarantor whether or not action is brought against Debtor or whether or not Debtor be joined in any such action or actions. Guarantor waives, to the fullest extent permitted by law, the benefit of any statute of limitations affecting their liability under this Guaranty. Any payment by Debtor or other circumstance that operates to toll any statute of limitations as to Debtor shall also operate to toll the statute of limitations as to Guarantor",null,"Payment Guaranty","4",53,"doc","https://templates.business-in-a-box.com/imgs/1000px/payment-guaranty-D404.png","https://templates.business-in-a-box.com/imgs/250px/404.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#404.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/","payment guaranty","Payment Guaranty Template","https://templates.business-in-a-box.com/imgs/400px/404.png","https://templates.business-in-a-box.com/imgs/600px/404.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/",[41,45,49,53,57,61,65,69,73,77,81,85,89,108,124,138,156,167],{"label":42,"url":43,"thumb":44,"extension":10},"Guaranty","/template/guaranty-D401","https://templates.business-in-a-box.com/imgs/250px/401.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},"Payment Collections Policy","/template/payment-collections-policy-D13744","https://templates.business-in-a-box.com/imgs/250px/13744.png",{"label":62,"url":63,"thumb":64,"extension":10},"Guaranty of a Lease","/template/guaranty-of-a-lease-D1177","https://templates.business-in-a-box.com/imgs/250px/1177.png",{"label":66,"url":67,"thumb":68,"extension":10},"Guaranty Agreement","/template/guaranty-agreement-D13699","https://templates.business-in-a-box.com/imgs/250px/13699.png",{"label":70,"url":71,"thumb":72,"extension":10},"Late Payment Letter","/template/late-payment-letter-D448","https://templates.business-in-a-box.com/imgs/250px/448.png",{"label":74,"url":75,"thumb":76,"extension":10},"Payment on Specific Accounts","/template/payment-on-specific-accounts-D455","https://templates.business-in-a-box.com/imgs/250px/455.png",{"label":78,"url":79,"thumb":80,"extension":10},"Termination of Future Guaranty","/template/termination-of-future-guaranty-D301","https://templates.business-in-a-box.com/imgs/250px/301.png",{"label":82,"url":83,"thumb":84,"extension":10},"Cancellation of Stop Payment Order","/template/cancellation-of-stop-payment-order-D443","https://templates.business-in-a-box.com/imgs/250px/443.png",{"label":86,"url":87,"thumb":88,"extension":10},"Demand for Extension of Payment Date","/template/demand-for-extension-of-payment-date-D444","https://templates.business-in-a-box.com/imgs/250px/444.png",{"description":90,"descriptionCustom":6,"label":91,"pages":92,"size":93,"extension":10,"preview":94,"thumb":95,"svgFrame":96,"seoMetadata":97,"parents":98,"keywords":106,"url":107},"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","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},[99,101,103],{"label":17,"url":100},"finance-accounting",{"label":20,"url":102},"business-loan",{"label":104,"url":105},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":109,"descriptionCustom":6,"label":110,"pages":8,"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",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":100},{"label":20,"url":102},{"label":20,"url":102},"/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":66,"pages":92,"size":111,"extension":10,"preview":158,"thumb":68,"svgFrame":159,"seoMetadata":160,"parents":162,"keywords":165,"url":166},"GUARANTY AGREEMENT This Guaranty Agreement (\"Agreement\") is entered into effect as of [DATE], BETWEEN: [GUARANTOR'S NAME], (\"Guarantor\"), an individual with their 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: [CREDITOR'S NAME], (\"Creditor\") an individual with their 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] PURPOSE OF THE AGREEMENT The Guarantor agrees to guarantee and be responsible for the obligations of the debtor (hereinafter referred to as the \"Debtor\") to the Creditor, as described herein. DEFINITIONS 2.1 Debtor: The individual or entity for whom the Guarantor is providing the guarantee, and who has obligations to the Creditor. GUARANTEE OF OBLIGATIONS 3.1 The Guarantor hereby guarantees and promises to pay to the Creditor all obligations, debts, and liabilities owed by the Debtor to the Creditor, as described in Exhibit A attached hereto. TERMS OF GUARANTEE 4.1 The Guarantor's obligation under this Agreement shall not be affected or impaired by any extension, renewal, modification, or change of the terms of the Debtor's obligations to the Creditor. 4","https://templates.business-in-a-box.com/imgs/1000px/guaranty-agreement-D13699.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13699.xml",{"title":161,"description":6},"guaranty agreement",[163,164],{"label":36,"url":119},{"label":36,"url":119},"security agreement","/template/security-agreement-D13699",{"description":168,"descriptionCustom":6,"label":169,"pages":8,"size":111,"extension":10,"preview":170,"thumb":171,"svgFrame":172,"seoMetadata":173,"parents":175,"keywords":174,"url":182},"SECURED LUMP-SUM PROMISSORY NOTE AGREEMENT This Secured Lump-Sum Promissory Note Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME], (the \"Issuer\") a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME], (the \"Holder\") company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at/Individual having an address at: [YOUR COMPLETE ADDRESS] FOR VALUE RECEIVED, the undersigned Issuer hereby promises to pay to the order of the Holder, the maximum Principal Amount of [PRINCIPAL AMOUNT] together with interest on the unpaid Principal Amount (as defined in this Agreement) outstanding from time to time at the rate (or rates) hereafter specified, and all other sums which may be owing to the Holder by the Issuer hereunder. The terms of the Note are as follows: MATURITY DATE AND PAYMENT TERMS This Note will mature, and be due and payable in full, on [DATE] (the \"Maturity Date\") and shall be paid in the lump sum amount of [LUMP SUM AMOUNT TO BE PAID]. INTEREST From and after the date hereof, all outstanding principal of this Note will bear simple interest at the rate of [PERCENT OF INTEREST] per annum. On the date that is [NUMBER OF DAYS] days after the date of this Note, the Issuer shall pay the then accrued interest on this Note. Upon the occurrence and during the continuance of any Event of Default (as hereinafter defined) under this Note, all outstanding principal of this Note shall bear interest at the rate of [PERCENT OF INTEREST] per annum. All outstanding principal and accrued but unpaid interest on this Note shall be payable on the Maturity Date. SECURITY This Note is Secured by a Security Agreement on the Issuer's Property, described as [PROPERTY DESCRIPTION], hereinafter known as the \"Security,\" which shall transfer to the possession and ownership of the Holder immediately in case of Acceleration. The Security may not be sold or transferred without the Holder's consent until the Maturity Date. If the Issuer breaches this provision, the Holder may declare all sums due under this Note immediately due and payable, unless prohibited by applicable law. The Holder shall have the sole option to accept the Security as full payment for the Principal Amount without further liabilities or obligations. If the market value of the Security does not exceed the Principal Amount, the Issuer shall remain liable for the balance due while accruing interest at the maximum rate allowed by law. PREPAYMENT The Issuer may prepay this Note prior to the Maturity Date, without premium or penalty, upon written notice to the Holder. EVENTS OF DEFAULT The occurrence of any one or more of the following events shall constitute an \"Event of Default\" under this Note: the failure of the Issuer to pay any sum due under this Note when due, whether by demand or otherwise, and such sum remains unpaid for five (5) days after the Due Date; and any other Event of Default described in the Security Agreement that might be signed between the Parties regarding the Property that is pledged as collateral to the loan. RIGHTS AND REMEDIES UPON DEFAULT ","Secured Lumpsum Promissory Note Agreement","https://templates.business-in-a-box.com/imgs/1000px/secured-lumpsum-promissory-note-agreement-D13041.png","https://templates.business-in-a-box.com/imgs/250px/13041.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13041.xml",{"title":174,"description":6},"secured lumpsum promissory note agreement",[176,179],{"label":177,"url":178},"Business Plan Kit","business-plan-kit",{"label":180,"url":181},"Business Procedures","business-procedures","/template/secured-lumpsum-promissory-note-agreement-D13041",false,{"seo":185,"reviewer":197,"legal_disclaimer":201,"quick_facts":202,"at_a_glance":204,"personas":208,"variants":233,"glossary":261,"clauses":296,"how_to_fill":347,"common_mistakes":388,"faqs":413,"industries":441,"comparisons":458,"diy_vs_lawyer":474,"jurisdictions":487,"related_template_ids_curated":508,"schema":521,"classification":522},{"meta_title":186,"meta_description":187,"primary_keyword":188,"secondary_keywords":189},"Payment Guaranty Template (Free Word)","Free payment guaranty template for lenders, landlords, and creditors. Covers guarantor obligations, scope, and enforcement. Used in 190+ countries. Free Word and PDF download.","payment guaranty template",[190,191,192,193,194,195,196],"payment guarantee template","personal guaranty template","payment guaranty form","commercial guaranty template","guaranty of payment word template","business payment guarantee template","continuing guaranty template",{"name":198,"credential":199,"reviewed_date":200},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":203,"legal_review_recommended":201,"signature_required":201,"notarization_required":183},"advanced",{"what_it_is":205,"when_you_need_it":206,"whats_inside":207},"A Payment Guaranty is a legally binding agreement in which a guarantor — typically an individual or parent company — promises to satisfy a debtor's payment obligations to a creditor if the debtor fails to pay. This free Word download gives you a professionally structured guaranty you can edit online and export as PDF, covering guarantor liability, scope, enforcement rights, and waiver provisions.\n","Use it when extending credit, signing a commercial lease, issuing a business loan, or entering a supply agreement where the primary obligor's creditworthiness is uncertain and you need a solvent individual or entity standing behind the debt as a backstop.\n","Identification of the parties and underlying obligation, the guarantor's absolute and unconditional payment promise, scope of liability, waivers of defenses, creditor enforcement rights, representations and warranties, governing law, and signature block with notarization option.\n",[209,213,217,221,225,229],{"title":210,"use_case":211,"icon_asset_id":212},"Commercial landlords","Requiring a principal or parent company to back a tenant's lease obligations","persona-landlord",{"title":214,"use_case":215,"icon_asset_id":216},"Small business lenders","Securing a founder's personal guaranty before extending a business loan","persona-lender",{"title":218,"use_case":219,"icon_asset_id":220},"Suppliers and trade creditors","Protecting against buyer default on net-term purchase agreements","persona-supplier",{"title":222,"use_case":223,"icon_asset_id":224},"Startup founders","Signing a personal guaranty required by a bank, landlord, or major vendor","persona-startup-founder",{"title":226,"use_case":227,"icon_asset_id":228},"Corporate treasury teams","Issuing a parent company guaranty to support a subsidiary's financing","persona-cfo",{"title":230,"use_case":231,"icon_asset_id":232},"Franchise operators","Providing a personal or corporate guaranty required by a franchisor","persona-franchise-applicant",[234,238,242,246,250,253,257],{"situation":235,"recommended_template":236,"slug":237},"Individual signing personally for a business debt","Personal Payment Guaranty","payment-guaranty-D404",{"situation":239,"recommended_template":240,"slug":241},"Parent company guaranteeing a subsidiary's obligations","Corporate Guaranty Agreement","guaranty-agreement-D13699",{"situation":243,"recommended_template":244,"slug":245},"Guaranty covering all present and future debts with no fixed cap","Continuing Guaranty","general-continuing-guaranty-D399",{"situation":247,"recommended_template":248,"slug":249},"Multiple guarantors each liable for the full amount","Joint and Several Guaranty","guaranty-D401",{"situation":251,"recommended_template":252,"slug":249},"Guarantor liable only up to a specified dollar cap","Limited Guaranty",{"situation":254,"recommended_template":255,"slug":256},"Guaranty securing a commercial real estate lease","Lease Guaranty","guaranty-of-a-lease-D1177",{"situation":258,"recommended_template":259,"slug":260},"Construction project payment security for a subcontractor","Payment Bond","bond-agreement-D13310",[262,265,268,271,274,277,279,282,285,288,291,293],{"term":263,"definition":264},"Guarantor","The party who promises to pay the creditor if the primary debtor defaults — distinct from the borrower or obligor.",{"term":266,"definition":267},"Obligor (Principal Debtor)","The primary party obligated to pay under the underlying agreement — the business or individual whose debt is being guaranteed.",{"term":269,"definition":270},"Creditor (Obligee)","The party to whom payment is owed and who holds the benefit of the guaranty — a lender, landlord, or supplier.",{"term":272,"definition":273},"Underlying Obligation","The specific debt, lease, or payment duty the guaranty is written to secure — identified by reference to the original agreement.",{"term":275,"definition":276},"Absolute and Unconditional Guaranty","A guaranty that allows the creditor to demand payment from the guarantor immediately upon default, without first pursuing the primary debtor.",{"term":244,"definition":278},"A guaranty that covers all obligations arising under an ongoing relationship rather than a single, fixed transaction.",{"term":280,"definition":281},"Surety","A party who promises to be primarily responsible for a debt alongside the debtor — stricter than a guaranty, where the guarantor is secondarily liable.",{"term":283,"definition":284},"Waiver of Defenses","A clause in which the guarantor gives up the right to raise certain legal defenses — such as lack of notice or modification of the underlying agreement — against the creditor's claim.",{"term":286,"definition":287},"Subrogation","The guarantor's right, after paying the creditor, to step into the creditor's shoes and pursue the primary debtor for reimbursement.",{"term":289,"definition":290},"Indemnification","A guarantor's right to be reimbursed by the primary debtor for any payment made to the creditor on the debtor's behalf.",{"term":252,"definition":292},"A guaranty capped at a specific dollar amount or time period, beyond which the guarantor bears no further liability.",{"term":294,"definition":295},"Joint and Several Liability","When multiple guarantors are each individually responsible for the full guaranteed amount, allowing the creditor to collect the entire sum from any one of them.",[297,302,307,312,317,322,327,332,337,342],{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Parties and recitals","Identifies the guarantor, the obligor (principal debtor), and the creditor, and recites the underlying agreement being guaranteed.","This Payment Guaranty ('Guaranty') is entered into as of [DATE] by [GUARANTOR FULL LEGAL NAME] ('Guarantor') in favor of [CREDITOR FULL LEGAL NAME] ('Creditor') to induce Creditor to extend credit to [OBLIGOR FULL LEGAL NAME] ('Principal') under that certain [DESCRIPTION OF UNDERLYING AGREEMENT] dated [DATE] ('Underlying Agreement').","Using a trade name or DBA instead of the guarantor's full legal name. If the guaranty is against an individual, the legal name must match a government-issued ID exactly, or enforcement becomes procedurally complicated.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Guaranty of payment","The core promise — the guarantor unconditionally agrees to pay all amounts owed under the underlying agreement if the principal defaults.","Guarantor absolutely and unconditionally guarantees to Creditor the full and prompt payment of all amounts due and payable by Principal under the Underlying Agreement, including principal, interest, fees, and costs ('Guaranteed Obligations'), as and when such amounts become due.","Drafting a guaranty of collection instead of a guaranty of payment. A guaranty of collection requires the creditor to exhaust remedies against the principal first — which adds months of delay and cost before the guarantor can be pursued.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Scope and duration of liability","Defines whether the guaranty is limited to a specific amount, a single transaction, or all obligations arising over an ongoing relationship (continuing guaranty).","Guarantor's liability hereunder is [limited to $[DOLLAR AMOUNT] / unlimited and continuing with respect to all Guaranteed Obligations] and shall remain in full force until all Guaranteed Obligations have been indefeasibly paid and satisfied in full.","Leaving the scope ambiguous — not specifying whether the guaranty is limited or continuing. Courts in most jurisdictions interpret ambiguous scope in favor of the guarantor, narrowing the creditor's recovery.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"Waiver of defenses and notices","The guarantor gives up common defenses such as requiring prior notice of default, demanding pursuit of the principal first, or objecting to modifications of the underlying agreement.","Guarantor waives: (a) notice of acceptance of this Guaranty; (b) notice of default by Principal; (c) any right to require Creditor to proceed against Principal before proceeding against Guarantor; (d) any defense arising from modification, extension, or release of the Underlying Agreement.","Omitting the waiver of the anti-deficiency defense in real-estate-related guaranties. Several US states restrict deficiency collection after foreclosure — a specific waiver is needed in those jurisdictions to preserve the creditor's rights.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Representations and warranties of guarantor","The guarantor confirms they have authority to sign, are solvent, have reviewed the underlying agreement, and are not signing under duress.","Guarantor represents and warrants that: (a) Guarantor has full legal capacity and authority to execute this Guaranty; (b) this Guaranty constitutes the legal, valid, and binding obligation of Guarantor; (c) Guarantor is solvent as of the date hereof; (d) Guarantor has independently reviewed the Underlying Agreement.","Omitting a solvency representation. If the guarantor is insolvent at signing and the guaranty is later challenged as a fraudulent transfer, a solvency representation — even if ultimately inaccurate — creates a contemporaneous record that supports the creditor's good-faith position.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Creditor's rights and remedies","Grants the creditor flexibility to modify, extend, release, or settle with the principal without releasing the guarantor, and to apply payments in any order.","Creditor may, without notice to or consent of Guarantor and without affecting Guarantor's obligations hereunder: (a) extend, renew, or modify the Underlying Agreement; (b) release or compromise any collateral or other obligor; (c) apply any payments received in any order Creditor deems appropriate.","Failing to include a clause permitting the creditor to release collateral without discharging the guaranty. Under common law, releasing collateral can release the guarantor pro tanto — this clause contractually displaces that default rule.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Subrogation and indemnification","After paying the creditor, the guarantor steps into the creditor's position to recover from the principal, but only after all of the creditor's claims are fully satisfied.","Upon payment in full of all Guaranteed Obligations, Guarantor shall be subrogated to the rights of Creditor against Principal. Guarantor agrees not to exercise any rights of subrogation or indemnification until the Guaranteed Obligations have been indefeasibly paid in full.","Allowing the guarantor to exercise subrogation rights before the debt is fully paid. Premature subrogation claims by a guarantor can compete with the creditor's remaining recovery — subordination of those rights until full payment protects the creditor.",{"name":333,"plain_english":334,"sample_language":335,"common_mistake":336},"Guaranty as independent obligation","Confirms the guaranty stands on its own and is not affected by the unenforceability, invalidity, or discharge of the underlying agreement.","This Guaranty is an independent obligation of Guarantor and shall be enforceable irrespective of the validity, regularity, or enforceability of the Underlying Agreement or any circumstance which might otherwise constitute a defense available to, or discharge of, Principal.","Tying the guaranty's validity directly to the underlying contract without this independence clause. If the underlying agreement is voided or discharged in bankruptcy, a guaranty without this language may fail along with it.",{"name":338,"plain_english":339,"sample_language":340,"common_mistake":341},"Governing law, jurisdiction, and waiver of jury trial","Specifies which jurisdiction's law governs, designates the courts where disputes will be heard, and waives the right to a jury trial to reduce litigation cost and timelines.","This Guaranty shall be governed by the laws of [STATE / JURISDICTION]. Guarantor irrevocably submits to the exclusive jurisdiction of the courts of [COUNTY], [STATE]. GUARANTOR AND CREDITOR EACH HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING UNDER THIS GUARANTY.","Choosing a governing law that has no connection to either party's location or the underlying transaction. Several states — California and New York in particular — have specific guaranty statutes that apply regardless of contractual choice-of-law provisions.",{"name":343,"plain_english":344,"sample_language":345,"common_mistake":346},"Entire agreement and amendment","Confirms the signed document is the complete agreement on the guaranty and that changes require written consent from the creditor.","This Guaranty constitutes the entire agreement of Guarantor with respect to the subject matter hereof and supersedes all prior representations and understandings. No amendment or waiver of this Guaranty shall be effective unless in writing signed by Creditor.","Omitting this clause and relying on oral assurances given during negotiation. Without an integration clause, a guarantor may introduce prior emails or verbal representations to argue the scope was narrower than written.",[348,353,358,363,368,373,378,383],{"step":349,"title":350,"description":351,"tip":352},1,"Identify all parties with full legal names","Enter the guarantor's full legal name (individual or registered entity), the obligor's registered legal name, and the creditor's legal entity name. For individuals, confirm the name matches a government-issued ID.","For corporate guarantors, pull the exact legal name from the state or provincial corporate registry — abbreviations like 'Inc.' vs. 'Incorporated' matter when filing an enforcement action.",{"step":354,"title":355,"description":356,"tip":357},2,"Reference the underlying agreement precisely","Identify the underlying obligation by the document name, date, and parties. If the obligation has a loan number, lease number, or account reference, include it so the guaranty is unambiguously tied to a specific debt.","Attach a copy of the underlying agreement as Exhibit A to the guaranty and reference the exhibit in the body — this prevents disputes about which obligation is covered.",{"step":359,"title":360,"description":361,"tip":362},3,"Choose limited or continuing guaranty scope","Decide whether the guaranty covers a single fixed amount or all obligations arising under an ongoing relationship. Enter the dollar cap if limited, or confirm the continuing-guaranty language if unlimited. This is the single most commercially significant drafting decision in the document.","If extending trade credit on revolving terms, use a continuing guaranty — a single-transaction guaranty leaves future invoices unprotected.",{"step":364,"title":365,"description":366,"tip":367},4,"Confirm the waiver of defenses block","Review each waiver item and confirm it reflects the commercial intent. The standard waivers — notice of default, right to require pursuit of the principal first, and modification waivers — should remain in most commercial guaranties.","In California, guarantors of commercial loans receive additional statutory protections under Civil Code §§ 2787–2855 — specific statutory waivers must be included verbatim or the protections survive.",{"step":369,"title":370,"description":371,"tip":372},5,"Complete the representations and warranties","Confirm the guarantor's authority to sign (board resolution if a corporation, or personal capacity if an individual), insert the jurisdiction of organization for entity guarantors, and verify the solvency representation is accurate as of signing.","For corporate guarantors, attach a board or member resolution authorizing execution of the guaranty as Exhibit B — lenders and landlords routinely require this.",{"step":374,"title":375,"description":376,"tip":377},6,"Set governing law and jurisdiction","Select the state or country whose law governs and the specific county or court where disputes will be resolved. Choose a jurisdiction with a meaningful connection to the transaction — the creditor's location, the property location, or the loan origination state.","New York and Delaware are common neutral choices for large commercial guaranties because their courts have well-developed guaranty enforcement precedent.",{"step":379,"title":380,"description":381,"tip":382},7,"Execute with proper signatures and notarization if required","The guarantor must sign in their individual capacity or as an authorized officer of the entity. Some lenders and jurisdictions require notarization — confirm the requirement before execution and have the guarantor sign in front of a notary if needed.","Date the guaranty on the same day as or before the underlying agreement — backdating or forward-dating creates enforceability risk and may constitute fraud.",{"step":384,"title":385,"description":386,"tip":387},8,"Retain a fully executed original and serve notice","Keep a signed original in your records and provide the guarantor with a copy. Some jurisdictions require the creditor to deliver a copy of the fully executed guaranty to the guarantor within a specified period to trigger the guarantor's obligations.","Store the executed guaranty alongside the underlying agreement in your document management system so both are available immediately if a default occurs.",[389,393,397,401,405,409],{"mistake":390,"why_it_matters":391,"fix":392},"Drafting a guaranty of collection instead of a guaranty of payment","A guaranty of collection requires the creditor to sue the principal, obtain a judgment, and exhaust enforcement remedies before the guarantor can be called upon — a process that can take 12–24 months and cost more than the debt.","Use the absolute and unconditional payment guaranty language in the template, which allows the creditor to proceed directly against the guarantor immediately upon default.",{"mistake":394,"why_it_matters":395,"fix":396},"Omitting the waiver of modification defense","Without an explicit waiver, a court may discharge the guarantor if the creditor modifies the underlying agreement — extending a payment term, adjusting interest, or releasing collateral — without the guarantor's written consent.","Include a comprehensive waiver confirming the guarantor remains bound even if the underlying agreement is modified, extended, or amended in any manner.",{"mistake":398,"why_it_matters":399,"fix":400},"Using a trade name or DBA for the guarantor","A guaranty signed under a trade name may be unenforceable because a DBA is not a legal entity capable of contracting — enforcing the guaranty in court requires identifying the real party behind the name.","Always use the guarantor's full registered legal name or legal given name, and confirm it against corporate registration documents or government-issued ID before signing.",{"mistake":402,"why_it_matters":403,"fix":404},"Leaving scope language ambiguous between limited and continuing","Courts in most jurisdictions construe ambiguous guaranty scope in favor of the guarantor, potentially limiting recovery to the first transaction when the creditor intended coverage for all future obligations.","State explicitly in the scope clause whether the guaranty is limited to $[AMOUNT] or is a continuing guaranty covering all present and future obligations — never leave this to implication.",{"mistake":406,"why_it_matters":407,"fix":408},"Allowing subrogation rights before full payment","A guarantor who exercises subrogation before the creditor is fully paid effectively competes with the creditor for the same assets — reducing the creditor's ultimate recovery.","Include a subordination clause that expressly prohibits the guarantor from exercising any subrogation, indemnification, or reimbursement rights until all guaranteed obligations are indefeasibly paid in full.",{"mistake":410,"why_it_matters":411,"fix":412},"Failing to attach and cross-reference the underlying agreement","Without a clear reference to the specific obligation being guaranteed, the guarantor can argue the guaranty does not cover the particular debt in dispute, forcing the creditor into costly threshold litigation before reaching the merits.","Reference the underlying agreement by name, date, and parties in the body of the guaranty, and attach a copy as Exhibit A with the guarantor's initials on each page.",[414,417,420,423,426,429,432,435,438],{"question":415,"answer":416},"What is a payment guaranty?","A payment guaranty is a legally binding contract in which a guarantor — an individual or company — unconditionally promises to pay a creditor if the primary debtor fails to meet their payment obligations. It gives the creditor a second party to pursue in the event of default, without first requiring them to exhaust remedies against the primary debtor. Payment guaranties are widely used in commercial lending, lease transactions, and supply agreements to reduce credit risk.\n",{"question":418,"answer":419},"What is the difference between a guaranty of payment and a guaranty of collection?","A guaranty of payment allows the creditor to demand payment directly from the guarantor as soon as the debtor defaults, without any obligation to first pursue the debtor. A guaranty of collection requires the creditor to sue the debtor, obtain a judgment, and attempt to collect before turning to the guarantor. Creditors strongly prefer payment guaranties because collection guaranties can delay enforcement by one to two years and add significant legal costs.\n",{"question":421,"answer":422},"What is a continuing guaranty?","A continuing guaranty covers all present and future obligations of the debtor to the creditor under an ongoing relationship — not just a single transaction. It is commonly used in revolving credit lines, trade credit accounts, and commercial leases where new obligations arise periodically. A continuing guaranty remains in force until all guaranteed obligations are fully paid or the guaranty is formally terminated in writing.\n",{"question":424,"answer":425},"Can a guaranty be limited to a specific dollar amount?","Yes. A limited guaranty caps the guarantor's maximum liability at a specified dollar figure or percentage of the underlying obligation. This is often negotiated by guarantors who want exposure to back a transaction but are unwilling to take on unlimited personal liability. Creditors must weigh whether the capped amount provides meaningful protection — if the cap is well below the potential default exposure, the guaranty provides limited practical security.\n",{"question":427,"answer":428},"Does a personal guaranty affect the guarantor's personal credit?","A personal guaranty itself does not appear on a credit report unless the underlying debt is called and the guarantor defaults on the payment obligation. At that point, a judgment against the guarantor or assignment to collections can affect personal credit significantly. Guarantors should treat a personal guaranty as equivalent to personally co-signing the underlying debt for credit-exposure purposes.\n",{"question":430,"answer":431},"Can a guaranty be released or terminated early?","A guaranty can be terminated early only if the creditor agrees in writing to release the guarantor. Most commercial guaranties explicitly provide that the guarantor cannot unilaterally revoke the obligation once signed, unless the underlying agreement itself is terminated with no remaining amounts owed. Some continuing guaranties include a prospective-revocation provision allowing the guarantor to limit future obligations with written notice, while remaining bound for all obligations incurred before revocation.\n",{"question":433,"answer":434},"Is a payment guaranty enforceable against a spouse?","Spousal consent requirements vary significantly by jurisdiction. Several US states — particularly community-property states like California, Texas, and Arizona — may require the non-signing spouse's consent or may subject community assets to the guaranty even without signature. In Canada and the UK, spousal consent is not typically required but lenders often request it to prevent later claims that marital assets are exempt. Legal advice specific to the guarantor's jurisdiction is strongly recommended when marital property may be at stake.\n",{"question":436,"answer":437},"Do I need a lawyer to prepare a payment guaranty?","For straightforward commercial guaranties — such as a business loan personal guaranty or a commercial lease guaranty — a high-quality template reviewed by counsel is typically sufficient. Engage a lawyer when the guaranteed amount is substantial, the transaction involves multiple guarantors with joint and several liability, the guarantor is in a jurisdiction with complex statutory protections (California, Ontario, or EU member states), or when the underlying transaction is itself complex (cross-border financing, structured debt).\n",{"question":439,"answer":440},"What happens to a personal guaranty if the business files for bankruptcy?","A bankruptcy filing by the primary debtor does not discharge the guarantor's obligations. The automatic stay in a US bankruptcy proceeding applies to the debtor, not to guarantors — meaning the creditor can continue to pursue the guarantor even while the debtor's bankruptcy case is pending. This is one of the primary reasons lenders require personal guaranties: they ensure recovery access even if the business entity becomes insolvent.\n",[442,446,450,454],{"industry":443,"icon_asset_id":444,"specifics":445},"Commercial Real Estate","industry-real-estate","Landlords routinely require a principal's personal guaranty or parent-company guaranty to back a tenant's lease obligations, particularly for startup tenants or thinly capitalized entities with no credit history.",{"industry":447,"icon_asset_id":448,"specifics":449},"Banking and Commercial Lending","industry-fintech","SBA lenders are required by program rules to obtain personal guaranties from all owners holding 20% or more equity; commercial banks use payment guaranties to secure term loans, lines of credit, and equipment financing.",{"industry":451,"icon_asset_id":452,"specifics":453},"Wholesale and Trade Credit","industry-manufacturing","Suppliers extending net-30 or net-60 payment terms to new or high-risk buyers use payment guaranties to ensure a solvent guarantor stands behind the receivable if the buyer defaults.",{"industry":455,"icon_asset_id":456,"specifics":457},"Franchising","industry-retail","Franchisors typically require franchisees to provide a personal guaranty of the franchise agreement's financial obligations, including royalties, marketing fund contributions, and lease obligations.",[459,462,466,470],{"vs":91,"vs_template_id":460,"summary":461},"promissory-note-D188","A promissory note is a direct promise by the borrower to repay a specific amount on defined terms — the primary debt instrument. A payment guaranty is a secondary promise by a third party to pay if the borrower does not. Together, they are commonly executed in tandem: the note documents the debt; the guaranty adds a backstop obligor.",{"vs":463,"vs_template_id":464,"summary":465},"Indemnity Agreement","indemnification-agreement-D13698","An indemnity agreement obligates one party to reimburse another for losses, liabilities, or costs arising from specified events — broader in scope than a payment guaranty. A payment guaranty is narrower: it covers only the failure to pay a defined financial obligation. Indemnities address risk allocation across a transaction; guaranties address credit risk specifically.",{"vs":467,"vs_template_id":468,"summary":469},"Surety Bond","D{SURETY_BOND_ID}","A surety bond is a three-party instrument in which a licensed surety company guarantees a principal's performance or payment to an obligee — typically required in construction and government contracting. A payment guaranty is a two-party contract (guarantor to creditor) without a licensed intermediary. Surety bonds are regulated financial instruments; payment guaranties are ordinary contracts enforceable under general contract law.",{"vs":471,"vs_template_id":472,"summary":473},"Personal Guarantee (Informal)","D{PERSONAL_GUARANTEE_INFORMAL_ID}","An informal personal guarantee — such as an email or verbal assurance that an owner 'stands behind' a business debt — is difficult to enforce because it often lacks the specific waivers, scope definition, and consideration recital that courts require. A formal payment guaranty template includes all legally operative provisions needed for reliable enforcement, making it far more effective in a collection or litigation context.",{"use_template":475,"template_plus_review":479,"custom_drafted":483},{"best_for":476,"cost":477,"time":478},"Standard commercial guaranties for business loans, trade credit, or commercial leases under $500K with a single domestic guarantor","Free","20–30 minutes",{"best_for":480,"cost":481,"time":482},"Guaranties involving material amounts, multiple guarantors with joint and several liability, or guarantors in jurisdictions with significant statutory protections","$300–$800","1–3 days",{"best_for":484,"cost":485,"time":486},"Large commercial financings, cross-border guaranties, structured credit transactions, or guaranties linked to complex collateral packages","$1,500–$5,000+","1–3 weeks",[488,493,498,503],{"code":489,"name":490,"flag_asset_id":491,"note":492},"us","United States","flag-us","Guaranty enforceability is primarily governed by state law, and rules vary significantly. California Civil Code §§ 2787–2855 grants guarantors extensive statutory protections — including rights to require pursuit of the debtor first — that survive unless specifically and verbatim waived in the guaranty. Anti-deficiency statutes in California, Arizona, and several other states can limit post-foreclosure recovery against guarantors unless waived. New York and Delaware are generally creditor-friendly jurisdictions with well-developed commercial guaranty case law.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"ca","Canada","flag-ca","Guaranties in Canada are governed by provincial law. Ontario's Statute of Frauds requires guaranties to be in writing and signed by the guarantor to be enforceable. British Columbia and Alberta impose similar writing requirements. Quebec civil law treats guaranties (called 'suretyships') differently from common-law provinces — they are governed by the Civil Code of Quebec and may carry mandatory protections for individual sureties that cannot be contracted out of.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"uk","United Kingdom","flag-uk","Under the Statute of Frauds 1677 (still in force), a guaranty must be in writing and signed by the guarantor to be enforceable in England and Wales. The Unfair Contract Terms Act 1977 and the Consumer Rights Act 2015 may limit enforceability of certain waivers where the guarantor is a consumer rather than a business. Personal guaranties given by company directors are common in UK commercial lending and are generally enforceable provided independent legal advice is documented.",{"code":504,"name":505,"flag_asset_id":506,"note":507},"eu","European Union","flag-eu","Guaranty law varies materially across EU member states. France requires guaranties to include handwritten statements of the guaranteed amount to be enforceable against individual guarantors. Germany distinguishes between Bürgschaft (surety, with subsidiary liability) and Garantie (independent payment guarantee, primary liability). Consumer protection frameworks in multiple member states — including distance-selling and unfair-terms directives — may restrict enforcement of guaranties given by individuals outside a business context. Legal review for cross-border EU guaranties is strongly recommended.",[509,510,511,512,513,514,515,516,517,518,519,520],"promissory-note-D434","indemnification-agreement-D13016","loan-agreement-D417","lease-agreement-D1179","security-agreement-D13699","secured-lumpsum-promissory-note-agreement-D13041","credit-information-cover-letter-D258","demand-for-extension-of-payment-date-D444","business-credit-application-D247","non-disclosure-agreement-nda-D12692","independent-contractor-agreement-D160","business-proposal-D1258",{"emit_how_to":201,"emit_defined_term":201},{"primary_folder":119,"secondary_folder":523,"document_type":524,"industry":525,"business_stage":526,"tags":527,"confidence":533},"guaranties-and-collateral","agreement","general","all-stages",[528,529,530,531,532],"legal","contract","liability","guaranty","payment-obligation",0.95,"\u003Ch2>What is a Payment Guaranty?\u003C/h2>\n\u003Cp>A \u003Cstrong>Payment Guaranty\u003C/strong> is a legally binding agreement in which a \u003Cstrong>guarantor\u003C/strong> — an individual owner, parent company, or third party — makes an absolute and unconditional promise to pay a creditor the amounts owed by a primary debtor if that debtor fails to pay. Unlike a co-signer arrangement, a well-drafted payment guaranty allows the creditor to pursue the guarantor directly upon default, without first suing the debtor or exhausting other remedies. The guaranty stands as an independent obligation, meaning it remains enforceable even if the underlying debt agreement is modified or challenged. Payment guaranties are a foundational credit-risk tool in commercial lending, commercial real estate leasing, trade credit, and franchise transactions.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Extending credit, signing a lease, or shipping goods on net terms without a payment guaranty means your only recourse in a default is against the entity you already know cannot pay — otherwise you would not be facing a default. A signed, properly drafted payment guaranty changes that calculus entirely: it gives you a second, solvent party to pursue immediately, without the procedural delay of exhausting remedies against the primary obligor. The absence of a guaranty is felt most acutely in bankruptcy — when the primary debtor files, the automatic stay halts collection efforts against the debtor, but a guaranty lets you continue pursuing the guarantor in parallel. Beyond enforcement, a payment guaranty functions as a powerful deterrent: when an owner or parent company has personal financial exposure, they have strong incentive to ensure the underlying obligation is paid on time. This template provides the complete legal framework — absolute payment obligation, comprehensive waiver of defenses, subrogation subordination, and governing-law provisions — that creditors need to make the guaranty stick when it matters most.\u003C/p>\n",1781186014660]