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The Loan Guarantor Agreement is a critical legal instrument used in Nigerian financial transactions when a third party (the guarantor) agrees to secure a loan by promising to repay the debt if the primary borrower defaults. This document is essential in various contexts, from corporate financing to personal loans, and must comply with Nigerian banking regulations, the Banks and Other Financial Institutions Act (BOFIA), and general contract law principles. The agreement typically includes detailed provisions about the guarantee's scope, enforcement mechanisms, representations and warranties, and the specific obligations of all parties involved. It serves as a risk mitigation tool for lenders while providing clear parameters for guarantors' responsibilities. The document becomes particularly important in the Nigerian context where lending institutions often require additional security measures to support credit facilities.

1. Parties: Identifies the Guarantor, Lender, and Principal Debtor with their full legal names and addresses

2. Background: Recitals explaining the context of the loan agreement and the purpose of the guarantee

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

4. Guarantee and Indemnity: Core section detailing the guarantee obligations, including the amount guaranteed and the nature of the guarantee (continuing, primary, etc.)

5. Scope of Guarantee: Defines exactly what obligations are covered by the guarantee and any limitations

6. Guarantor's Representations and Warranties: Statements about the Guarantor's capacity, authority, and financial condition

7. Guarantor's Covenants: Ongoing obligations of the Guarantor during the life of the guarantee

8. Enforcement and Rights of the Lender: Details when and how the Lender can enforce the guarantee

9. Payments and Interest: Specifies how and when payments must be made under the guarantee

10. Duration and Release: Terms regarding how long the guarantee remains in force and conditions for release

11. Notices: Communication requirements and contact details for formal notices

12. Governing Law and Jurisdiction: Confirms Nigerian law as governing law and specifies jurisdiction for disputes

13. Execution: Signature blocks and execution requirements