Define: Parental Guarantee

How is Parental Guarantee defined in a legal contract?

• Parental Guarantee means a guarantee provided by a parent entity, which fulfills all requirements as if the entity were the primary debtor. The assurance must be satisfactory to the buyer. Seen in 6 SEC Filings
• Parental Guarantee means an assurance given by the parent entity of a Clearing Participant to ensure the obligations of such Clearing Participant by submitting a letter of guarantee in the prescribed form, including other related documents deemed to be equivalent to such letter of guarantee. Seen in 3 SEC Filings
• Parental Guarantee means a parental agreement in which a certain entity guarantees in favor of the vendor, the representations, warranties, obligations, and covenants of the purchaser which are contained in this agreement, up to a certain amount. Seen in 1 SEC Filing
• Parental Guarantee means a guarantee provided by a parent entity for the benefit of the buyer in a substantial form. Seen in 1 SEC Filing

Please note that some definitions have been omitted because they include specific organizational or locational information per the guidelines stated.

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of parental guarantee' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Parental Guarantee means a binding assurance given by a parent entity to fulfill obligations, in a form satisfactory to the recipient, as if it were the primary debtor.

Relevant Contract Types

• Credit Agreement
• Loan Agreement
• Debt Restructuring Agreement
• Acquisition Agreement

Relevant Circumstances

• When a subsidiary company is applying for credit.
• To secure financial obligations within business deals.
• In facilitation of mergers and acquisitions.
• As a part of debt restructuring process.

Relevant Sectors

• Financial Services
• Real Estate
• Healthcare

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Genie Definition 2

• Parental Guarantee means confirmation provided by a parent entity to secure the obligations of its subsidiary, through a formally accepted letter of guarantee or equivalent documents.

Relevant Contract Types

• Supply Agreement
• Franchise Agreement
• Joint Venture Agreement

Relevant Circumstances

• When a franchisee is securing its obligations towards a franchisor.
• In the event of a joint venture and shared responsibilities.
• To guarantee a supply agreement between two parties.

Relevant Sectors

• Retail and Consumer goods
• Food Services
• Manufacturing

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