The Guarantee Agreement For Loan is a crucial document in Malaysian banking and finance practice, typically used when a lender requires additional security beyond the borrower's own covenant. This agreement becomes necessary in various scenarios, such as when a parent company guarantees a subsidiary's loans, when individual directors guarantee corporate borrowing, or in project finance structures. The document must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and Financial Services Act 2013, and should be properly stamped under the Stamp Act 1949 to be admissible in Malaysian courts. It contains comprehensive provisions covering the nature and extent of the guarantee, enforcement mechanisms, representations and warranties, and the circumstances under which the guarantee can be discharged.

1. Parties: Identifies the Guarantor, the Lender (Bank/Financial Institution), and the Borrower whose obligations are being guaranteed

2. Background: Describes the underlying loan agreement and explains why the guarantee is being provided

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Guarantee and Indemnity: Core section establishing the guarantee obligations, scope of guarantee, and indemnification provisions

5. Nature of Guarantee: Specifies that the guarantee is continuing, unconditional and irrevocable

6. Representations and Warranties: Guarantor's confirmations about their capacity, authority, and financial status

7. Guarantor's Covenants: Ongoing obligations of the Guarantor including financial covenants and information requirements

8. Payments: Terms for how and when payments must be made under the guarantee

9. Preservation of Rights: Lender's rights preservation and ability to pursue multiple remedies

10. Discharge and Release: Conditions under which the guarantee obligations will be discharged

11. Notices: Communication requirements and contact details for formal notices

12. Governing Law and Jurisdiction: Confirms Malaysian law governance and jurisdiction for disputes

13. Miscellaneous: Standard boilerplate provisions including severability, amendments, and counterparts