The Guarantee Promissory Note is a crucial financial instrument utilized in Australian business transactions where additional security is required for a debt obligation. This document is particularly valuable when a lender requires both a direct promise of payment from a borrower and additional security through a guarantee from a third party. The instrument combines the formal requirements of a promissory note under the Bills of Exchange Act 1909 with comprehensive guarantee provisions, making it suitable for various commercial lending scenarios. It's commonly used in business financing, property transactions, and commercial arrangements where the creditor seeks enhanced protection through multiple layers of payment obligation. The document must comply with Australian federal and state legislation regarding financial instruments, guarantees, and consumer protection, particularly when the guarantor is an individual or small business entity.

1. Parties: Identification of the Maker (primary debtor), the Payee (creditor), and the Guarantor

2. Background: Context of the underlying debt obligation and the purpose of the guarantee promissory note

3. Definitions: Key terms used throughout the document including 'Payment Date', 'Principal Sum', 'Interest Rate', and 'Event of Default'

4. Promise to Pay: Unconditional promise by the Maker to pay the specified sum with interest terms

5. Guarantee: Guarantor's unconditional promise to pay if the Maker defaults, including the scope of the guarantee

6. Payment Terms: Details of payment amount, interest rate, payment schedule, and method of payment

7. Default Provisions: Circumstances constituting default and consequences of default

8. Guarantor's Obligations: Specific obligations and undertakings of the Guarantor

9. Rights of the Payee: Enforcement rights and remedies available to the Payee

10. Assignment and Transferability: Terms regarding the transfer or assignment of the note

11. Governing Law: Specification of Australian law as governing law and jurisdiction

12. Execution: Signature blocks for all parties and witness requirements