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Loan Guarantor Agreement Template for Belgium

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Key Requirements PROMPT example:

Loan Guarantor Agreement

"I need a Loan Guarantor Agreement under Belgian law where ABC Holdings NV will act as guarantor for a 鈧2.5 million business loan taken by its subsidiary XYZ Operations BVBA from BelBank SA, with the guarantee to commence from March 1, 2025."

Document background
The Loan Guarantor Agreement is a crucial document in Belgian financial transactions where additional security is required for loan obligations. This agreement is commonly used when a lender requires extra assurance beyond the borrower's own covenant, typically in situations involving corporate financing, real estate transactions, or business expansion loans. The document, governed by Belgian law, must comply with the Belgian Civil Code's provisions on suretyship (cautionnement/borgtocht) and relevant financial regulations. It outlines the guarantor's obligations, liability limits, enforcement procedures, and includes specific protections required under Belgian law. The Loan Guarantor Agreement is particularly important in commercial lending scenarios where parent companies guarantee subsidiaries' obligations or when directors provide personal guarantees for company loans.
Suggested Sections

1. Parties: Identification of all parties: Guarantor, Lender (Beneficiary), and Borrower

2. Background: Context of the guarantee, reference to the underlying loan agreement, and the purpose of this guarantee

3. Definitions: Definitions of key terms used throughout the agreement, including 'Guaranteed Obligations', 'Default Events', and 'Security'

4. Guarantee: Core section detailing the scope and nature of the guarantee obligation

5. Extent of Liability: Clear specification of the guarantor's liability limits and the maximum guaranteed amount

6. Duration: Term of the guarantee and conditions for termination

7. Representations and Warranties: Guarantor's confirmations regarding their capacity and authority to enter into the agreement

8. Payment Obligations: Specific terms regarding how and when the guarantor must make payments upon demand

9. Enforcement: Procedures and conditions for enforcing the guarantee

10. Preservation of Rights: Lender's rights preservation and waiver of guarantor's defenses

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction for disputes

Optional Sections

1. Security: Include when the guarantee is secured by specific assets

2. Joint and Several Liability: Required when multiple guarantors are involved

3. Tax Gross-Up: Include when tax implications need to be addressed explicitly

4. Currency Provisions: Required when the guarantee involves multiple currencies

5. Assignment and Transfer: Include when transfer rights need to be specifically addressed

6. Financial Covenants: Include when the guarantor must maintain specific financial conditions

7. Consumer Protection Provisions: Required when the guarantor is a natural person (consumer)

Suggested Schedules

1. Schedule 1 - Form of Demand: Standard form for making a demand under the guarantee

2. Schedule 2 - Underlying Loan Agreement: Copy or key terms of the loan agreement being guaranteed

3. Schedule 3 - Guarantor's Assets Statement: If required, statement of guarantor's financial position

4. Schedule 4 - Specific Secured Assets: If applicable, details of any assets securing the guarantee

5. Appendix A - Required Corporate Authorizations: Copies of relevant corporate approvals for corporate guarantors

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























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Relevant Industries

Banking

Financial Services

Real Estate

Commercial Lending

Corporate Finance

Small and Medium Enterprises

Construction

Manufacturing

Retail

Professional Services

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit Administration

Corporate Banking

Commercial Lending

Business Development

Corporate Governance

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Credit Manager

Risk Manager

Treasury Manager

Banking Relationship Manager

Loan Officer

Commercial Director

Business Development Manager

Company Director

Financial Controller

Compliance Officer

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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