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Guaranty Agreement
"I need a Guaranty Agreement for our parent company to guarantee a £5 million business loan that our subsidiary is taking out from ABC Bank, with the guarantee period starting from March 2025 and running for 5 years."
1. Parties: Identifies guarantor, beneficiary, and principal debtor
2. Background: Context of the guarantee and underlying obligation
3. Definitions: Key terms used throughout the agreement
4. Guarantee and Indemnity: Core obligations of the guarantor
5. Scope of Guarantee: Extent of guaranteed obligations
6. Preservation of Rights: Beneficiary's rights preservation clauses
7. Payments: Payment terms and mechanisms
8. Representations and Warranties: Guarantor's confirmations and statements
9. Governing Law and Jurisdiction: Applicable law and dispute resolution
1. Security Provisions: Additional provisions when the guarantee is secured by other assets or instruments
2. Multiple Guarantors: Provisions for joint and several liability when there is more than one guarantor
3. Currency Provisions: Specific provisions for currency conversion and payment terms in cross-border guarantees
4. Assignment: Provisions governing the transfer rights and restrictions of the guarantee
1. Form of Demand: Standard template for making demands under the guarantee
2. Guaranteed Obligations: Detailed list of obligations being guaranteed
3. Security Documents: List and details of related security documents where the guarantee is secured
Authors
Default
Demand
Enforcement Event
Finance Documents
Guaranteed Agreement
Guarantor
Beneficiary
Principal Debtor
Guarantee Period
Liability
Maximum Liability Amount
Permitted Security Interest
Security
Security Documents
Outstanding Amount
Business Day
Insolvency Event
Material Adverse Change
Effective Date
Termination Date
Underlying Agreement
Working Hours
Written Notice
Costs and Expenses
Governing Law
Jurisdiction
Interest Rate
Payment Currency
Relevant Jurisdiction
Representations and Warranties
Payment Obligations
Continuing Security
Enforcement Rights
Default and Remedies
Preservation of Rights
Principal Debtor Insolvency
Discharge and Release
Set-off Rights
Currency Provisions
Costs and Expenses
Assignment and Transfer
Amendments and Waivers
Severability
Notices
Confidentiality
Further Assurance
Counterparts
Third Party Rights
Time of Essence
Entire Agreement
Force Majeure
Joint and Several Liability
Waiver of Defenses
Governing Law
Jurisdiction
Service of Process
Limitation of Liability
Indemnification
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