Products tagged with 'guarantee of debt repayment'

If you loan money to businesses in California, have the principals of the borrower sign this Guaranty of Debt Obligation form to accompany the loan documents.

• The owners of the borrower company agree to guarantee repayment of the borrower's indebtedness.
• The Guaranty is given unconditionally. The guarantors waive the benefit of any statute of limitations affecting their liability.
• The guarantors will repay the debt upon the dissolution, insolvency, bankruptcy, receivership or business failure of the debtor.
• The guarantors have no right of subrogation until the debt is paid in full.
• This form is a digital template. Buy the form, download it, use it as often you require.
• Intended to be used only in the State of California.

Overview

If you are considering loaning money to either an individual or a company, it is important to protect your financial interest. This USA Promissory Note and Guarantee provides a formal method to secure your loan, ensuring that both the repayment terms and additional guarantees are clearly outlined.

Repayment Terms

Under the terms of this Note, the borrower commits to repaying the secured amount through monthly payments. It is important to note that these payments may not necessarily be equal in amount each month, allowing for potential flexibility in the repayment structure.

Guarantee of Payment

To further secure the lender's position, the Note includes a guarantee of payment. If the borrower fails to make the required payments when they become due, a guarantor will step in to fulfil the payment obligations. The guarantor agrees to ensure that the creditor receives a monthly instalment payment, which is calculated as a specified percentage of the guarantor's net revenue.

Additional Information

• This document is available in Microsoft Word format for ease of use and editing.
• It is intended solely for use within the United States.

Overview of Guarantee and Postponement

When a corporate borrower seeks a loan, lenders often require an additional level of security to ensure repayment. One effective approach is to obtain a personal guarantee, using a Guarantee and Postponement form such as this template for the Province of British Columbia.

Who Should Provide the Guarantee?

The guarantee must be supplied by an individual who has a significant stake in the company, such as a director, shareholder, or sole proprietor. By providing this guarantee, the individual commits to repaying the borrower's indebtedness to the lender if the corporate borrower defaults on the loan.

Priority of Debts

Under the terms of the Guarantee and Postponement, the guarantor also agrees that any debts the borrower owes to them will be deferred in favor of debts owed to the lender. This means the lender's claims take priority over any other claims the guarantor may have against the borrower.

Form Usage and Availability

Once purchased, the Guarantee and Postponement form can be used multiple times without incurring additional fees. It is available for immediate download following purchase, allowing lenders in British Columbia to quickly integrate it into their loan documentation. Every lender in the province is encouraged to include this form as a standard part of their lending process.