Personal guarantee of company debt
This personal guarantee is the equivalent of the "PG" your bank might ask you to sign when storm clouds gather around your company. It is for use in any situation requiring an individual to guarantee the debt of a company, but most usually when the guarantor is a director. Applicable to any situation where money is owed. Suitable for use by lender or guarantor as it provides a wide range of options to produce a final version with high or very high level of lender security.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this document
This is a professionally drawn personal guarantee agreement for a lender to put to a company director as a condition of either increased lending or forbearance in enforcement of existing loan conditions. First, it identifies an original loan agreement between the lender and the company, then ties the guarantor to it, to “stand in the shoes” of the company in the event that it was unable to make repayment when due.
The agreement provides many options primarily to strengthen the position of the lender. Some could be deleted so as to provide a softer agreement for the guarantor if required.
The law in this document
There is no modern statutory law relating to guarantees. This document is based on contract common law.
Net Lawman offers other document templates related to new guarantees at Guarantees and Indemnities.
Agreement features and contents
- The key benefit of using this document over adding a guarantee paragraph to the original contract is the simplicity of use.
- There is no need to edit and agree the original contract. That means less room for making a mistake and invalidating some provision of it.
- Provides heavyweight protection for the lender.
- The document highlights the continuing liability of the guarantor (usually the director who is personally liable for the company debt).
This document was written by a solicitor for Net Lawman. It complies with current New Zealand law.
"I have found Net Lawman perfect for my needs and saved me thousand of dollars in legal fees getting a lawyer to produce these douc's from scratch. I have used three of the Net Lawman doc's to basically write up the NDA, contract, Non Solicitation agreements to a level of being 95% complete and then used my lawyer to sign off. My lawyer even commented how complete these doc's are.
Thanks guys, great service/product.
Cheers Dean"Dean Harper
"I used Netlawman to pre-work some contracts for my lawyer. He came back stating that the forms were 'excellent' and saved me several billable hours."Chris T.
"Yes the document was very useful, easy to read and understand and contained everything I needed. I will definitely refer to your site in the future. "Vicky Gregory