Personal Guaranty Form Template for Philippines

The Personal Guaranty Form is a crucial document in Philippine business and financial transactions, commonly used when extending credit facilities, loans, or other financial accommodations. This document becomes necessary when a creditor requires additional security beyond the principal debtor's commitment, typically in situations involving substantial credit risks or when dealing with new businesses or individuals with limited credit history. The form must comply with Philippine Civil Code requirements, particularly Articles 2047-2084 governing guaranty contracts, and often requires careful consideration of banking regulations and commercial laws. It serves as a risk mitigation tool for creditors while creating significant legal obligations for guarantors, making it essential in various commercial relationships from simple loans to complex business transactions.

1. Parties: Identifies the Guarantor, Creditor, and Principal Debtor with their complete legal names and addresses

2. Background: Explains the context of the guaranty, including the relationship between parties and the underlying obligation being guaranteed

3. Definitions: Defines key terms used throughout the agreement including 'Guaranteed Obligations', 'Event of Default', and other relevant terms

4. Guarantee and Indemnity: Core section detailing the scope of the guarantee, including the specific obligations being guaranteed and the nature of the guarantor's liability

5. Representations and Warranties: Guarantor's confirmations regarding their legal capacity, authority, and financial ability to provide the guarantee

6. Nature of Guarantee: Specifies that the guarantee is continuing, irrevocable, and unconditional, defining the extent of the guarantor's obligations

7. Payment Terms: Details how and when the guarantor must fulfill their obligations upon default by the principal debtor

8. Duration and Termination: Specifies the term of the guarantee and conditions for its termination or release

9. Enforcement: Outlines the creditor's rights and remedies in case of default

10. Governing Law and Jurisdiction: Specifies Philippine law as governing law and designates jurisdiction for dispute resolution