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The Loan Guarantor Agreement Form is a critical document in Canadian lending practices, used when a third party (the guarantor) agrees to guarantee the repayment of a loan taken by a primary borrower. This document is essential in situations where additional security is required by lenders, particularly common in business loans, mortgages, and commercial financing. The agreement is structured to comply with Canadian federal banking regulations and provincial contract laws, incorporating necessary protections for all parties. It details the extent of the guarantee, conditions for enforcement, rights of the guarantor, and obligations of all parties involved. This form is particularly important for financial institutions in managing credit risk and for businesses seeking to secure financing with third-party support.

1. Parties: Identifies all parties to the agreement: the Guarantor(s), the Lender, and reference to the Principal Debtor

2. Background: Explains the context of the guarantee, including reference to the principal loan agreement and the relationship between parties

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Principal Debtor', 'Security', etc.

4. Guarantee: Core section detailing the scope and nature of the guarantee, including the amount guaranteed and the nature of the guarantor's liability

5. Nature of Guarantee: Specifies whether the guarantee is continuing, unlimited, joint and several (if multiple guarantors)

6. Guarantor's Obligations: Details specific obligations, including payment, performance, and indemnification requirements

7. Lender's Rights: Outlines the lender's rights regarding enforcement, dealing with security, and releasing other guarantors

8. Representations and Warranties: Guarantor's confirmations regarding their legal capacity, understanding of obligations, and financial condition

9. Preservation of Rights: Provisions ensuring the guarantee remains valid despite changes to the principal debt or other circumstances

10. Costs and Expenses: Allocates responsibility for legal and enforcement costs

11. Notices: Specifies how formal communications between parties should be made and delivered

12. Governing Law and Jurisdiction: Specifies applicable law and courts for dispute resolution

13. Execution: Signature blocks and attestation requirements