The Rent Guarantee Agreement is a crucial security instrument in the Maltese rental market, used when additional assurance is needed for a tenant's performance under a lease agreement. This document is particularly relevant when dealing with new tenants without local rental history, corporate tenants requiring parent company guarantees, or situations where the tenant's financial standing necessitates additional security. The agreement, governed by Maltese law, typically includes detailed provisions on the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations. It can be used for both residential properties (subject to the Private Residential Leases Act) and commercial properties, and may involve individual guarantors, corporate entities, or financial institutions. The document needs to comply with Malta's Civil Code provisions on both leases and guarantees, ensuring enforceability while protecting all parties' interests.
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1. Parties: Identifies and provides full details of the Landlord, Tenant, and Guarantor
2. Background: Recitals explaining the underlying tenancy agreement and the context for the guarantee
3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Property', and 'Tenancy Agreement'
4. Guarantee and Indemnity: Core section detailing the scope of the guarantee, including payment obligations and performance guarantees
5. Duration of Guarantee: Specifies the term of the guarantee and any conditions for its continuation or termination
6. Guarantor's Obligations: Detailed list of the guarantor's specific obligations and responsibilities
7. Enforcement and Remedies: Describes when and how the guarantee can be enforced and the landlord's remedies
8. Preservation of Rights: Maintains the landlord's rights in various circumstances and prevents certain defenses by the guarantor
9. Representations and Warranties: Statements and assurances made by the guarantor regarding their capacity and authority
10. Notices: Specifies how formal communications between parties should be made and delivered
11. Governing Law and Jurisdiction: Confirms Maltese law as governing law and establishes jurisdiction for disputes
1. Corporate Guarantee Provisions: Additional provisions required when the guarantor is a company rather than an individual
2. Joint Guarantors: Special provisions for when there is more than one guarantor
3. Cap on Liability: Section limiting the guarantor's maximum liability, if agreed
4. Bank Guarantee Provisions: Specific provisions required when the guarantee is provided by a bank
5. Assignment and Transfer: Provisions allowing the guarantee to be assigned or transferred, if required
6. Costs and Expenses: Allocation of costs related to preparing and enforcing the guarantee, if not covered in main sections
1. Schedule 1 - The Property: Detailed description of the rental property covered by the guarantee
2. Schedule 2 - The Tenancy Agreement: Copy or key details of the underlying tenancy agreement
3. Schedule 3 - Guaranteed Obligations: Detailed list of the specific obligations being guaranteed
4. Schedule 4 - Corporate Authority Documents: If applicable, corporate resolutions and authority documents for corporate guarantors
5. Appendix A - Form of Demand: Template for making formal demands under the guarantee
6. Appendix B - Guarantor's Financial Statement: If required, financial information provided by the guarantor
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