The Loan Personal Guarantee Form is an essential document in New Zealand's lending landscape, used when additional security is required for a loan beyond the borrower's own creditworthiness. This document is typically employed when a lender requires extra assurance for loan repayment, such as in business loans where directors personally guarantee company debts, or in situations where borrowers have limited credit history. The form must comply with New Zealand's strict consumer credit laws, particularly the Credit Contracts and Consumer Finance Act 2003, and includes comprehensive details about the guarantee's scope, the guarantor's obligations, and their acknowledgment of independent legal advice. The document serves as a crucial risk management tool for lenders while ensuring transparency and protection for all parties involved.

1. Parties: Identifies the Guarantor, the Lender, and the Borrower (Principal Debtor)

2. Background: Explains the context of the guarantee, including reference to the principal loan agreement

3. Definitions: Defines key terms used throughout the guarantee agreement

4. Guarantee and Indemnity: Core section establishing the guarantee, its nature (continuing, unlimited, etc.), and indemnity provisions

5. Extent of Guarantee: Specifies the scope of guaranteed obligations and maximum liability

6. Guarantor's Acknowledgments: Confirms the guarantor understands their obligations and has received independent legal advice

7. Payment Obligations: Details when and how the guarantor must make payments upon demand

8. Representations and Warranties: Guarantor's confirmations about their financial position and capacity

9. Protection of Lender's Rights: Preserves lender's rights and remedies under the guarantee

10. Costs and Expenses: Outlines responsibility for legal and enforcement costs

11. Governing Law and Jurisdiction: Specifies New Zealand law governs the agreement

12. Execution: Signature blocks and execution requirements