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Enter the full legal name of this person as it would appear on a legal document.
Enter the full legal name of this person as it would appear on a legal document.
A Personal Guarantee is the legally binding commitment by an individual — typically a business owner, officer, or investor — to personally fulfill the obligations of a company if the company fails to do so. It pierces the corporate veil by design, exposing the guarantor's personal assets (home, savings, personal accounts) to the creditor's claims. Lenders, landlords, and vendors routinely require personal guarantees from principals of small businesses and startups. A guarantee may be unlimited (full amount) or limited (cap on exposure), continuing (covering future obligations) or specific (one transaction only). MUST be signed before delivery of the guaranteed obligation. Fill out this free personal guarantee agreement template online, e-sign it digitally, and download a legally valid PDF. no account or lawyer needed. Sections: Parties, Guarantee Terms.
This Personal Guarantee Agreement (the "Guarantee") is made and entered into as of ______________ by ______________, an individual residing at ______________ (the "Guarantor"), in favor of ______________, located at ______________ (the "Creditor"), with respect to the obligations of ______________, located at ______________ (the "Principal").
WHEREAS, Creditor is willing to extend credit, enter into a lease, contract, or other obligation with Principal, conditioned upon the execution and delivery of this Guarantee by Guarantor; and
WHEREAS, Guarantor has a direct financial interest in Principal and will benefit from Creditor's willingness to transact with Principal, and therefore Guarantor is willing to unconditionally guarantee the obligations of Principal as set forth herein;
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor hereby agrees as follows:
Guarantor hereby absolutely, irrevocably, and unconditionally guarantees to Creditor the full and prompt payment and performance by Principal of the following obligations (the "Guaranteed Obligations"): ______________. The Guaranteed Obligations include all amounts due under the foregoing, including principal, interest, late charges, penalties, collection costs, and attorney's fees.
This is a guarantee of payment and performance, not merely of collection. Creditor shall not be required, as a condition to enforcing this Guarantee, to first proceed against Principal, to exhaust any security held by Creditor, or to pursue any other remedy. Creditor may enforce this Guarantee independently of, and contemporaneously with, enforcement against Principal. This Guarantee is specific to the transaction described above and does not cover future obligations of Principal to Creditor.
Guarantor retains all standard defenses available to a surety or guarantor under applicable law, including the defenses of payment, discharge, modification without consent, and impairment of collateral.
This Guarantee shall remain in full force and effect until the Guaranteed Obligations have been fully and indefeasibly paid and performed. If any payment received by Creditor from Principal or Guarantor is subsequently avoided, rescinded, or required to be returned as a result of any bankruptcy, insolvency, or similar proceeding, this Guarantee shall be reinstated as to such payment and shall remain in full force and effect as if such payment had not been made.
Guarantor shall not exercise any right of subrogation against Principal until all Guaranteed Obligations have been fully and finally paid to Creditor. Upon full payment of all Guaranteed Obligations, Guarantor shall be subrogated to all of Creditor's rights against Principal, to the extent of payments made by Guarantor under this Guarantee.
Guarantor represents and warrants that: (a) Guarantor has the legal capacity and authority to execute this Guarantee; (b) this Guarantee constitutes Guarantor's legal, valid, and binding obligation, enforceable against Guarantor in accordance with its terms; (c) Guarantor is not in default under any agreement that would impair Guarantor's ability to perform under this Guarantee; and (d) Guarantor has reviewed and understands the Guaranteed Obligations and has independently determined that entering into this Guarantee is in Guarantor's financial interest.
Guarantor agrees to furnish Creditor, upon request, with Guarantor's current personal financial statement and income tax returns, and Guarantor consents to Creditor's review of Guarantor's personal credit history. Guarantor shall promptly notify Creditor of any material adverse change in Guarantor's financial condition.
If Creditor is required to take legal action to enforce this Guarantee, Guarantor shall pay all of Creditor's costs of enforcement, including reasonable attorney's fees, court costs, and collection expenses.
This Agreement shall be governed by and construed in accordance with the laws of the State of ______________, without regard to its conflict-of-laws principles.
GUARANTOR ACKNOWLEDGES THAT THIS GUARANTEE MAKES GUARANTOR PERSONALLY LIABLE FOR THE OBLIGATIONS OF ______________. GUARANTOR HAS READ AND UNDERSTANDS THIS GUARANTEE AND HAS HAD THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL BEFORE SIGNING.
Creditor Accepted by: ______________________________ ______________ Date: ____________________