The Guarantor On Lease Agreement is a crucial document in Dutch property leasing arrangements where additional security is required beyond the tenant's own covenant. This document is commonly used when letting property to students, new businesses, or entities with limited trading history. It provides landlords with additional security while enabling tenants who might otherwise not qualify to enter into lease agreements. The document, governed by Dutch law, establishes the guarantor's obligations to fulfill the tenant's responsibilities under the lease if the tenant defaults, including payment of rent, service charges, and other lease obligations. It includes specific provisions required under Dutch law regarding the scope of the guarantee, enforcement mechanisms, and the rights and obligations of all parties. The agreement must comply with the Dutch Civil Code's requirements for both lease and guarantee agreements, making it essential for property transactions requiring additional security in the Netherlands.
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1. Parties: Identification of all parties: Landlord (Creditor), Tenant (Debtor), and Guarantor
2. Background: Context of the guarantee, referring to the main lease agreement and explaining why the guarantee is required
3. Definitions: Definitions of key terms used in the agreement, including 'Guaranteed Obligations', 'Lease Agreement', and 'Guarantee Period'
4. Scope of Guarantee: Detailed description of what obligations are being guaranteed, including rent, service charges, and other tenant obligations
5. Duration of Guarantee: Term of the guarantee, including start date and end conditions
6. Guarantor's Obligations: Primary obligations of the guarantor, including payment obligations and performance guarantees
7. Demand and Payment: Process for making demands under the guarantee and how payments should be made
8. Preservation of Rights: Landlord's rights in relation to the guarantee and circumstances that don't affect the guarantee's validity
9. Representations and Warranties: Guarantor's confirmations about their capacity and authority to provide the guarantee
10. Notices: How and where formal communications between parties should be made
11. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction for disputes
1. Multiple Guarantors: Section needed when there is more than one guarantor, defining joint and several liability
2. Specific Asset Guarantee: Used when the guarantee is limited to or secured by specific assets
3. Maximum Liability Cap: Include when the guarantee is subject to a maximum amount
4. Early Termination Rights: Optional provisions for circumstances under which the guarantor can be released early
5. Step-In Rights: Optional rights for guarantor to take over the lease in case of tenant default
6. Financial Reporting: Requirements for guarantor to provide periodic financial information, typically used for corporate guarantors
7. Currency Provisions: Required when rent is paid in a currency different from the guarantee
8. Tax Gross-Up: Provisions for tax implications of guarantee payments
1. Schedule 1 - Main Lease Agreement: Copy or key terms of the lease agreement being guaranteed
2. Schedule 2 - Guaranteed Obligations: Detailed list of all obligations covered by the guarantee
3. Schedule 3 - Form of Demand: Template for making formal demands under the guarantee
4. Schedule 4 - Property Details: Details of the property subject to the lease agreement
5. Schedule 5 - Guarantor's Assets: If relevant, list of assets securing the guarantee or financial statements
6. Appendix A - Execution Formalities: Required formalities under Dutch law for guarantee execution
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