A Loan Guaranty Agreement is commonly used when a lender requires additional security for a loan beyond the borrower's own covenant. Under English and Welsh law, this document creates a secondary obligation where the guarantor promises to pay or perform if the primary obligor (borrower) defaults. The agreement typically includes detailed provisions about the scope of guarantee, enforcement mechanisms, and representations and warranties. This document is particularly important in commercial lending, corporate finance, and real estate transactions where additional security is required.

1. Parties: Identifies and defines all parties to the agreement - the lender, guarantor, and borrower

2. Background: Sets out context of the guarantee, including reference to the underlying loan agreement and reason for guarantee

3. Definitions: Defines key terms used throughout the agreement including 'Guaranteed Obligations', 'Event of Default', and 'Enforcement Event'

4. Guarantee and Indemnity: Core obligations of the guarantor including primary guarantee obligations and indemnity provisions

5. Scope of Guarantee: Extent and limitations of the guarantee, including maximum liability and any excluded obligations

6. Enforcement: Terms for enforcing the guarantee, including circumstances, notice requirements and enforcement process

7. Representations and Warranties: Guarantor's confirmations about capacity, authority, and financial condition

8. Preservation of Rights: Provisions ensuring guarantee remains valid despite variations to underlying loan or changes affecting borrower

9. Payments and Calculations: Rules regarding payment mechanics, timing, and calculation of amounts due

10. Costs and Expenses: Allocation of costs related to preparation, enforcement and amendments of the guarantee