The Promissory Note With Personal Guarantee is commonly used in South African business and personal transactions where a formal acknowledgment of debt with additional security is required. This document serves dual purposes: it creates a legally binding promise to pay a specified sum of money under defined terms, while simultaneously establishing a personal guarantee as additional security for the payment obligation. It's particularly useful in situations where the creditor requires extra assurance of payment beyond the maker's promise, such as in business loans, property transactions, or significant personal loans. The document must comply with South African legislation, particularly the Bills of Exchange Act 34 of 1964 for the promissory note aspect and the General Law Amendment Act 50 of 1956 for the suretyship provisions. The structured format includes clear payment terms, default provisions, and explicit waiver of legal benefits by the guarantor.

1. Parties: Identification of the Maker (Promisor), Payee (Promisee), and Guarantor with full legal names and addresses

2. Promise to Pay: Unconditional promise to pay a specific sum of money, including the principal amount in numbers and words

3. Payment Terms: Details of payment including due date(s), interest rate, payment method, and place of payment

4. Default Provisions: Consequences of default, including acceleration of the debt and recovery costs

5. Personal Guarantee: Terms of the personal guarantee, including the guarantor's unconditional commitment to pay upon maker's default

6. Guarantor's Waiver: Waiver of legal benefits such as excussion and division under South African law

7. Governing Law: Specification that South African law governs the note and guarantee

8. Signatures: Execution section for all parties with date and place of signing