Promissory Note Guaranty Template for Belgium

The Promissory Note Guaranty is utilized in commercial transactions where additional security is required for payment obligations evidenced by promissory notes. This document type is particularly relevant in Belgian business contexts where parties seek to enhance the creditworthiness of a transaction through third-party support. The guarantee is structured to comply with Belgian civil and commercial law requirements, including specific provisions regarding financial securities and negotiable instruments. It typically includes detailed information about the underlying promissory note, the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's obligations. The document is essential in trade finance, corporate lending, and commercial transactions where promissory notes are used as payment instruments.

1. Parties: Identification of the Guarantor, the Beneficiary (holder of the promissory note), and the Principal Debtor (issuer of the promissory note)

2. Background: Context of the underlying transaction, reference to the promissory note(s), and purpose of the guarantee

3. Definitions: Definitions of key terms used in the agreement, including 'Promissory Note', 'Guaranteed Obligations', and 'Enforcement Event'

4. Guarantee: Core provisions establishing the guarantee, its nature (independent or accessory), and scope of guaranteed obligations

5. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

6. Payment Obligations: Terms of payment, including timing, currency, and method of payment upon demand

7. Enforcement: Conditions and procedures for enforcing the guarantee, including notice requirements

8. Duration and Release: Term of the guarantee and conditions for its termination or release

9. Governing Law and Jurisdiction: Confirmation of Belgian law as governing law and designation of competent courts