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The Guarantee Promissory Note is a specialized financial instrument used in Irish business and lending transactions where enhanced payment security is required. It is particularly useful in situations where a primary debtor's obligation needs additional support through a third-party guarantee, while also providing the benefits of a negotiable instrument. This document type is commonly used in commercial lending, property development, and business financing arrangements. The structure combines the enforceability features of a promissory note with the security aspects of a guarantee, making it an attractive option for financial institutions and businesses seeking robust payment assurance. Under Irish law, the document must comply with both guarantee requirements and the formal requisites of a promissory note, including clear payment terms, unconditional promise, and proper execution formalities.
