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A Bank Personal Guarantee is a critical security document in Australian lending arrangements, commonly used when banks require additional assurance beyond the primary borrower's commitments. This document is essential in situations where a business or individual borrower may have limited trading history, insufficient assets, or where the bank seeks additional security for the loan. The guarantee must comply with Australian banking regulations, including the National Consumer Credit Protection Act 2009 and the Banking Code of Practice, which mandate specific protections for guarantors. It's particularly relevant in small business lending, where company directors may need to personally guarantee business loans, and in family business situations where family members may guarantee each other's obligations. The document includes mandatory warnings, requires independent legal advice in many cases, and must meet strict regulatory requirements regarding form, content, and execution.

1. Parties: Identifies the bank (guarantee beneficiary), the guarantor(s), and the primary debtor

2. Background: Explains the context of the guarantee, including reference to the primary facility being guaranteed

3. Definitions and Interpretation: Defines key terms and sets out interpretation principles

4. Important Notice to Guarantor: Mandatory warnings and notices required by Australian law and the Banking Code of Practice

5. Guarantee and Indemnity: Core guarantee obligations and indemnity provisions

6. Extent of Guarantee: Defines the scope and limit of the guaranteed amounts

7. Nature of Guarantee: Specifies that it is a continuing guarantee and addresses multiple guarantors if applicable

8. Guarantor Acknowledgments: Specific acknowledgments and confirmations from the guarantor

9. Payment Terms: When and how payments must be made under the guarantee

10. Bank's Rights: Sets out the bank's rights of enforcement and recovery

11. Protection of the Bank: Provisions protecting the bank's interests and rights

12. Guarantor Undertakings: Ongoing obligations and commitments of the guarantor

13. Default and Enforcement: Circumstances of default and enforcement procedures

14. Expenses and Interest: Provisions for recovery of costs and interest charges

15. General Provisions: Standard boilerplate clauses including notices, governing law, and jurisdiction