Personal Guarantee Form for Malta

Personal Guarantee Form Template for Malta

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Personal Guarantee Form

"I need a Personal Guarantee Form under Maltese law for a director guaranteeing their company's €500,000 business loan from MaltaBank plc, with the guarantee limited to 75% of the outstanding loan amount."

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What is a Personal Guarantee Form?

The Personal Guarantee Form is a crucial document in Malta's financial and commercial landscape, commonly used when additional security is required for loans, credit facilities, or other financial obligations. It serves as a legally binding commitment where a guarantor agrees to fulfill the financial obligations of a principal debtor if they default. The document must comply with Malta's Civil Code (Chapter 16) requirements, particularly Articles 1925-1963 governing suretyship. It typically includes specific details about the guaranteed obligations, the extent of liability, enforcement provisions, and the guarantor's acknowledgments and warranties. The form is especially relevant in commercial lending, property transactions, and business financing, where creditors seek additional security for their exposure. Personal guarantees are particularly common in small to medium-sized business arrangements where corporate principals personally guarantee their company's obligations.

What sections should be included in a Personal Guarantee Form?

1. Parties: Identification of the Guarantor, Creditor, and Principal Debtor

2. Background: Context of the guarantee, including reference to the principal debt or obligation being guaranteed

3. Definitions: Key terms used throughout the guarantee, including 'Guaranteed Obligations', 'Principal Debt', 'Security', etc.

4. Guarantee and Indemnity: Core guarantee provisions, including the scope and nature of the guarantee obligations

5. Extent of Liability: Clear statement of the maximum amount guaranteed and any limitations

6. Duration: Term of the guarantee and conditions for termination

7. Nature of Guarantee: Specification that this is a continuing security and binding as a principal obligation

8. Guarantor's Representations and Warranties: Confirmations regarding capacity, understanding, and authority to enter into the guarantee

9. Payment Provisions: Terms regarding manner and timing of payments under the guarantee

10. Enforcement: Circumstances and process for enforcing the guarantee

11. Notices: Communication requirements and contact details

12. Governing Law and Jurisdiction: Confirmation of Maltese law governance and jurisdiction

What sections are optional to include in a Personal Guarantee Form?

1. Joint and Several Liability: Required when there are multiple guarantors

2. Independent Legal Advice: Confirmation section when the guarantor has received independent legal advice - recommended for high-value guarantees

3. Security: Details of any additional security provided to support the guarantee

4. Currency Provisions: Required when the guarantee involves foreign currency obligations

5. Corporate Authority: Required when the guarantor is a corporate entity

6. Subordination: Required when the guarantee needs to be ranked in relation to other securities or obligations

7. Financial Covenants: Required when specific financial conditions need to be maintained by the guarantor

What schedules should be included in a Personal Guarantee Form?

1. Principal Agreement: Copy or details of the main agreement or debt being guaranteed

2. Guaranteed Obligations: Detailed description of the obligations covered by the guarantee

3. Payment Schedule: If applicable, schedule of payments or financial obligations

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

5. Legal Capacity Evidence: Documents evidencing the guarantor's legal capacity and authority

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 | Serial Founder & Legal AI Author

Relevant Industries

Banking

Financial Services

Real Estate

Construction

Commercial Lending

Retail

Manufacturing

Import/Export

Professional Services

Hospitality

Relevant Teams

Legal

Credit Risk

Compliance

Commercial Banking

Corporate Banking

Business Development

Underwriting

Contract Administration

Company Secretariat

Finance

Relevant Roles

Credit Manager

Risk Officer

Legal Counsel

Compliance Officer

Commercial Banking Manager

Relationship Manager

Credit Analyst

Legal Director

Corporate Lawyer

Financial Controller

Business Development Manager

Underwriter

Loan Officer

Contract Administrator

Company Secretary

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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