Surety Agreement for Malta
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Surety Agreement
"I need a Surety Agreement under Maltese law where our parent company will guarantee a €2.5 million business loan that our subsidiary is taking from MaltaBank plc in March 2025, with the guarantee covering both principal and interest payments for a 5-year term."
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1. Parties: Identifies and defines the three key parties: Creditor, Principal Debtor, and Surety
2. Background: Explains the context of the primary obligation and the purpose of the surety arrangement
3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations' and 'Enforcement Event'
4. Guarantee and Indemnity: Core section establishing the surety's obligations and the scope of the guarantee
5. Nature of Guarantee: Specifies whether the guarantee is continuing, covering all obligations or specific ones
6. Surety's Obligations: Details the specific obligations and commitments of the surety
7. Payment Provisions: Specifies the mechanism and timing for payments under the guarantee
8. Representations and Warranties: Standard representations by the surety regarding capacity and authority
9. Preservation of Rights: Provisions maintaining the creditor's rights in various circumstances
10. Discharge and Release: Conditions under which the surety's obligations may be discharged
11. Notices: Communication requirements and methods between parties
12. Governing Law and Jurisdiction: Confirms Maltese law governance and jurisdiction for disputes
1. Security: Include when the surety provides additional security for their obligations
2. Multiple Sureties: Required when there is more than one surety, defining joint and several liability
3. Corporate Authorizations: Include when the surety is a corporate entity, detailing required authorizations
4. Assignment and Transfer: Include when parties want to allow transfer of rights under the agreement
5. Currency Provisions: Required for cross-border transactions involving multiple currencies
6. Costs and Expenses: Optional section detailing responsibility for costs related to the agreement
7. Time Limitation: Include when the guarantee is for a specific time period rather than continuing
8. Demand Requirements: Specific procedures for making demands under the guarantee
1. Primary Obligation Details: Details of the main obligation being guaranteed (e.g., loan agreement, payment terms)
2. Guarantee Limit: If applicable, specific financial limits of the guarantee obligation
3. Form of Demand: Template for making valid demands under the guarantee
4. Corporate Authorizations: Copies of relevant corporate approvals and resolutions
5. Security Documents: If applicable, details of any security provided by the surety
6. Payment Schedule: If applicable, schedule of guaranteed payments or obligations
Authors
Applicable Law
Business Day
Creditor
Default Event
Default Interest Rate
Demand
Discharge Date
Enforcement Event
Event of Default
Guaranteed Obligations
Guaranteed Sum
Guaranteed Period
Indemnified Parties
Interest Period
Legal Proceedings
Loss
Material Adverse Change
Notice
Original Agreement
Payment Currency
Payment Date
Principal
Principal Agreement
Principal Debtor
Principal Obligations
Relevant Documents
Security
Security Interest
Surety
Suretyship Obligations
Tax
Working Day
Payment Obligations
Representations and Warranties
Covenants
Default
Enforcement
Discharge
Assignment
Set-off
Waiver
Confidentiality
Notices
Amendments
Severability
Third Party Rights
Costs and Expenses
Force Majeure
Termination
Entire Agreement
Counterparts
Governing Law
Jurisdiction
Joint and Several Liability
Further Assurance
Time of Essence
Authority and Capacity
Security Interest
Indemnification
Financial Services
Banking
Real Estate
Construction
Manufacturing
Retail
Import/Export
Professional Services
Technology
Infrastructure
Legal
Finance
Risk Management
Treasury
Compliance
Commercial
Credit Control
Corporate Secretariat
Business Development
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Risk Manager
Credit Manager
Treasury Manager
Commercial Director
Compliance Officer
Company Secretary
Business Development Manager
Contract Manager
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