Corporate Guarantee Agreement for Malta

Corporate Guarantee Agreement Template for Malta

A comprehensive legal document governed by Maltese law that establishes a corporate entity's guarantee of another party's obligations or debts. The agreement is structured in accordance with the Maltese Civil Code and Companies Act, detailing the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations. It includes specific provisions for preservation of rights, payment terms, and representations and warranties, while incorporating Malta's specific legal requirements for corporate guarantees and ensuring compliance with local corporate and banking regulations.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Corporate Guarantee Agreement?

The Corporate Guarantee Agreement is a crucial document in Maltese commercial transactions where one company provides financial backing for another entity's obligations. It is commonly used in corporate group structures, project financing, real estate developments, and various commercial arrangements where additional security is required. The agreement, governed by Maltese law, must comply with both the Civil Code (Chapter 16) and Companies Act (Chapter 386), particularly regarding corporate authority and guarantee provisions. This document is essential when parent companies guarantee subsidiaries' obligations, in syndicated lending arrangements, or when corporate groups seek to strengthen their commercial positions. The agreement typically includes detailed provisions on the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's rights and obligations, while incorporating specific requirements of Maltese law regarding corporate guarantees and securities.

What sections should be included in a Corporate Guarantee Agreement?

1. Parties: Identification of the Guarantor (corporate entity providing the guarantee), the Beneficiary (party receiving the guarantee), and the Principal Debtor (party whose obligations are being guaranteed)

2. Background: Context of the guarantee, including reference to the underlying principal agreement or facility being guaranteed

3. Definitions and Interpretation: Definitions of key terms used in the agreement and interpretation rules

4. The Guarantee: Core provisions setting out the guarantee obligations, including scope, extent, and nature of the guarantee (whether continuing, primary or secondary)

5. Payment Provisions: Terms governing how and when payments must be made under the guarantee, including currency and payment mechanisms

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

7. Preservation of Rights: Provisions ensuring the guarantee remains valid despite variations to the underlying obligation or other circumstances

8. Enforcement: Terms governing when and how the guarantee can be enforced, including any notice requirements

9. Indemnity: Additional protection requiring the guarantor to indemnify the beneficiary against losses

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

11. Notices: Process and requirements for giving formal notices under the agreement

12. Assignment and Transfer: Rights and restrictions regarding the transfer of rights under the guarantee

13. Governing Law and Jurisdiction: Confirmation of Maltese law as governing law and jurisdiction of Maltese courts

What sections are optional to include in a Corporate Guarantee Agreement?

1. Security: Include when the guarantee is secured by specific assets or rights

2. Tax Gross-Up: Include when payments under the guarantee may be subject to withholding tax

3. Financial Covenants: Include when the guarantor must maintain specific financial metrics

4. Information Undertakings: Include when regular financial or other information must be provided to the beneficiary

5. Multiple Guarantors: Include when there is more than one guarantor, setting out joint and several liability

6. Currency Indemnity: Include for cross-border transactions involving multiple currencies

7. Subordination: Include when the guarantee obligations need to be subordinated to other debt

8. Change of Control: Include when changes in guarantor ownership should trigger specific rights

What schedules should be included in a Corporate Guarantee Agreement?

1. Form of Demand: Template for making a demand under the guarantee

2. Principal Agreement: Copy or summary of the underlying agreement being guaranteed

3. Corporate Authorizations: Copies of board resolutions and other corporate approvals

4. Guaranteed Obligations: Detailed description or list of the obligations being guaranteed

5. Security Documents: If applicable, documents relating to any security provided

6. Notice Details: Detailed contact information for all parties for formal notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malta

Publisher

Genie AI

Document Type

Guarantee Agreement

Sector

Banking

Cost

Free to use

Find the exact document you need

Guarantor Agreement

A Maltese law-governed agreement where a guarantor commits to secure the obligations of a principal debtor to a creditor.

Download

Personal Guarantee Form

A Maltese law-governed document where a guarantor commits to securing another party's financial obligations, structured in accordance with Malta's Civil Code requirements.

Download

Corporate Guarantee Agreement

A Maltese law-governed agreement where a corporate entity guarantees the obligations or debts of another party, structured under Malta's Civil Code and Companies Act.

Download

Personal Guaranty Agreement

A Maltese law-governed agreement where a guarantor assumes responsibility for another party's financial obligations to a creditor.

Download

Rent Guarantee Agreement

A Maltese law agreement where a third party guarantees a tenant's obligations under a lease agreement, providing security to the landlord.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now