Document background
The Agreement of Personal Guaranty serves as a critical risk mitigation tool in Australian business and financial transactions, commonly used in situations where additional security is required for loans, credit facilities, or other financial obligations. This document is essential when a creditor requires personal assurance beyond the principal debtor's commitments, particularly in scenarios involving business loans, property leases, or significant financial transactions. The agreement must comply with Australian federal and state legislation, including the Australian Consumer Law and National Consumer Credit Protection Act, incorporating mandatory consumer protections and disclosure requirements. It details the guarantee's scope, the guarantor's obligations, enforcement procedures, and includes required statutory notices and acknowledgments. The document is particularly relevant in business contexts where directors personally guarantee company obligations or in situations where family members provide guarantees for business or personal loans.
