Loan Guarantor Agreement Form Template for Philippines

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Key Requirements PROMPT example:

Loan Guarantor Agreement Form

"I need a Loan Guarantor Agreement Form for a corporate guarantor backing a PHP 5 million business expansion loan, where the guarantor is a parent company providing guarantee for its subsidiary's loan, with the guarantee period starting March 1, 2025."

Document background
The Loan Guarantor Agreement Form is a crucial legal instrument in Philippine banking and finance practice, used when a third party agrees to guarantee a borrower's loan obligations. This document becomes necessary when a lender requires additional security beyond the borrower's own creditworthiness, particularly in commercial lending, property financing, or business expansion scenarios. The agreement must comply with Philippine Civil Code provisions on guaranty, the Truth in Lending Act, and relevant banking regulations. It typically includes detailed sections on the guarantee's scope, the guarantor's obligations, enforcement mechanisms, and release conditions. The document serves as a risk mitigation tool for lenders while providing clear parameters for guarantors' liability.
Suggested Sections

1. Parties: Identifies all parties: the Guarantor, the Lender, and the Borrower

2. Background: Describes the underlying loan agreement and the purpose of the guarantee

3. Definitions: Defines key terms used throughout the agreement

4. Guarantee and Indemnity: Core section detailing the guarantee obligations and indemnification provisions

5. Scope of Guarantee: Defines exactly what obligations are covered by the guarantee

6. Duration of Guarantee: Specifies when the guarantee becomes effective and when it terminates

7. Guarantor's Representations and Warranties: Statements of fact and promises made by the guarantor about their capacity and authority

8. Payment Mechanics: Details how and when payments must be made under the guarantee

9. Enforcement and Rights of the Lender: Describes when and how the lender can enforce the guarantee

10. Discharge and Release: Conditions under which the guarantor may be released from obligations

11. Costs and Expenses: Allocation of costs related to the guarantee

12. Notices: How formal communications between parties should be made

13. Governing Law and Jurisdiction: Confirms Philippine law governs and specifies jurisdiction for disputes

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Security Provisions: Include when the guarantee is secured by specific assets

2. Multiple Guarantors: Include when there is more than one guarantor, defining joint and several liability

3. Assignment and Transfer: Include when parties want to allow transfer of guarantee rights

4. Corporate Authorizations: Include when the guarantor is a corporation, detailing required corporate approvals

5. Subordination: Include when the guarantee needs to be ranked relative to other obligations

6. Foreign Currency Provisions: Include when the underlying loan is in a currency other than Philippine Peso

7. Tax Provisions: Include when specific tax implications need to be addressed

Suggested Schedules

1. Schedule 1 - Details of the Underlying Loan: Contains full details of the loan being guaranteed including amount, interest rate, and repayment terms

2. Schedule 2 - Guarantor Information: Contains detailed information about the guarantor including financial statements or asset listings

3. Schedule 3 - Form of Demand: Standard form for making a demand under the guarantee

4. Schedule 4 - Security Details: If applicable, details of any security provided for the guarantee

5. Appendix A - Required Corporate Authorizations: Copies of relevant corporate authorizations and resolutions

6. Appendix B - Specimen Signatures: Authenticated specimen signatures of authorized signatories

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Retail

Construction

Agriculture

Technology

Transportation

Energy

Healthcare

Relevant Teams

Legal

Finance

Compliance

Risk Management

Credit Operations

Corporate Secretarial

Banking Operations

Treasury

Documentation

Client Relations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Credit Risk Manager

Loan Officer

Compliance Officer

Banking Operations Manager

Corporate Secretary

Risk Assessment Officer

Treasury Manager

Account Manager

Relationship Manager

Credit Analyst

Legal Document Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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