Suretyship Agreement Template for Belgium

The Suretyship Agreement serves as a critical risk mitigation tool in various commercial and personal contexts under Belgian law. This document is typically used when a creditor requires additional security for obligations owed by a principal debtor, whether in lending arrangements, commercial contracts, or other financial transactions. The agreement must comply with the Belgian Civil Code (particularly Articles 2011-2043), the Economic Law Code, and where applicable, consumer protection legislation. When drafting a Suretyship Agreement, special attention must be paid to formal requirements, especially when the surety is a natural person, as Belgian law provides significant protections for individual guarantors. The document typically includes detailed provisions on the scope of the guarantee, enforcement mechanisms, and the interplay with other security interests, while ensuring compliance with mandatory Belgian law provisions regarding form and content.

1. Parties: Identification of the creditor, principal debtor, and surety (guarantor), including their full legal names, addresses, and registration details if applicable

2. Background: Context of the suretyship, describing the underlying obligation being guaranteed and the relationship between the parties

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Security Period', and other relevant definitions

4. Guarantee and Indemnity: Core provisions detailing the scope of the guarantee, maximum amount guaranteed, and nature of the surety's obligations

5. Duration and Extent: Term of the guarantee and the extent of obligations covered

6. Surety's Undertakings: Specific promises and commitments made by the surety

7. Independence and Primary Obligation: Establishing the independent nature of the guarantee from the main obligation

8. Preservation of Rights: Creditor's rights preservation and circumstances that don't affect the guarantee's validity

9. Demands and Payments: Process for making demands under the guarantee and payment obligations

10. Representations and Warranties: Surety's confirmations regarding their capacity and understanding

11. Termination: Conditions and process for terminating the guarantee

12. Notices: Communication procedures between parties

13. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdictional matters