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The Guarantor Promissory Note is widely used in Nigerian commercial and financial transactions where additional security is required beyond a standard promissory note. This document type is particularly valuable when creditors seek extra assurance for debt repayment through a third-party guarantee. Compliant with Nigerian law, particularly the Bills of Exchange Act and Stamp Duties Act, the document incorporates both the primary debt obligation and the guarantor's commitment. It's commonly used in business loans, personal lending, real estate transactions, and commercial credit arrangements. The document typically includes specific payment terms, interest rates, default provisions, and the guarantor's obligations, making it a comprehensive security instrument that protects the creditor's interests while clearly defining all parties' responsibilities.

1. Parties: Identification of the Maker (primary debtor), Payee (creditor), and Guarantor with their full legal names and addresses

2. Background: Brief context of the underlying transaction or reason for the promissory note

3. Definitions: Key terms used in the document including 'Principal Sum', 'Interest Rate', 'Due Date', and 'Event of Default'

4. Promise to Pay: Unconditional promise by the Maker to pay the specified sum with details of the principal amount, interest rate, and payment terms

5. Guarantor's Promise: Unconditional guarantee by the Guarantor to pay the debt if the Maker defaults

6. Payment Terms: Detailed payment schedule, interest calculations, and method of payment

7. Events of Default: Circumstances that constitute default and trigger immediate payment obligation

8. Joint and Several Liability: Clause establishing joint and several liability between Maker and Guarantor

9. Enforcement: Rights and remedies of the Payee in case of default

10. Governing Law: Specification of Nigerian law as the governing law

11. Execution: Signature blocks for all parties and witnessing requirements