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Lease Guaranty
"I need a Lease Guaranty agreement for our Dubai office space where our parent company will guarantee the lease obligations of our local subsidiary, with the lease term starting March 1, 2025, and the guarantee covering both rent and service charges."
1. Parties: Identification of the Guarantor, Landlord (beneficiary of the guarantee), and Tenant (primary obligor)
2. Background: Context of the guarantee, reference to the primary lease agreement, and purpose of the guarantee
3. Definitions: Key terms including 'Guaranteed Obligations', 'Lease Agreement', 'Property', and 'Guarantee Period'
4. Guarantee and Indemnity: Core guarantee obligations, scope of the guarantee, and indemnification provisions
5. Extent of Guarantee: Specific details of what is being guaranteed (rent, service charges, damages, etc.)
6. Duration: Term of the guarantee, including start date and conditions for termination
7. Guarantor's Obligations: Specific undertakings and continuing obligations of the guarantor
8. Preservation of Rights: Landlord's rights to enforce the guarantee and circumstances that don't affect guarantee validity
9. Demand and Payment: Process for making demands under the guarantee and payment requirements
10. Representations and Warranties: Guarantor's confirmations regarding capacity and authority to provide the guarantee
11. Notices: Communication procedures between parties
12. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction of courts/dispute resolution centers
1. Corporate Authority: Required when guarantor is a corporate entity, including corporate authorization details
2. Joint and Several Liability: Required when there are multiple guarantors
3. Islamic Finance Compliance: Required when the guarantee needs to be Sharia-compliant
4. Assignment and Transfer: Optional section dealing with ability to transfer or assign guarantee rights
5. Currency Provisions: Required for international leases or when rent is paid in non-UAE currency
6. Step-In Rights: Optional section for commercial leases allowing guarantor to take over lease
7. Limited Liability Provisions: Optional section capping guarantee liability (if negotiated)
8. Bank Guarantee Requirements: Required when guarantee is backed by or includes a bank guarantee
1. Schedule 1 - Primary Lease Details: Copy or key details of the underlying lease agreement
2. Schedule 2 - Guaranteed Obligations: Detailed breakdown of all obligations covered by the guarantee
3. Schedule 3 - Property Details: Description and details of the leased property
4. Schedule 4 - Form of Demand: Template for making demands under the guarantee
5. Appendix A - Corporate Authorization: Corporate resolutions and authorizations (if corporate guarantor)
6. Appendix B - Bank Guarantee Format: Standard format for any required bank guarantee
Authors
Real Estate
Banking & Financial Services
Retail
Hospitality
Commercial Office Space
Industrial & Warehousing
Residential Property
Shopping Malls & Retail Centers
Healthcare Facilities
Educational Institutions
Legal
Real Estate
Property Management
Risk Management
Finance
Operations
Compliance
Facilities Management
Treasury
Commercial
Real Estate Manager
Property Manager
Legal Counsel
Leasing Manager
Asset Manager
Facilities Manager
Risk Manager
Commercial Director
Chief Financial Officer
Compliance Officer
Real Estate Director
Operations Manager
Contract Manager
Treasury Manager
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