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The Personal Guarantee Promissory Note is commonly used in Nigerian business and financial transactions where additional security is required beyond a simple promise to pay. This document type is particularly valuable when a creditor requires extra assurance through a personal guarantee from a third party, typically used in situations involving business loans, commercial credit arrangements, or significant financial transactions. The document must comply with Nigerian legislation, particularly the Bills of Exchange Act Cap B8 LFN 2004 and contract laws. It includes detailed payment terms, guarantee provisions, enforcement mechanisms, and must be properly executed and stamped to be legally enforceable. This instrument is especially relevant when dealing with new businesses, companies with limited credit history, or transactions requiring enhanced security measures.

1. Parties: Identifies the Maker (primary debtor), the Payee (creditor), and the Guarantor

2. Background: Explains the context of the debt and guarantee relationship

3. Definitions: Defines key terms used throughout the document

4. Promise to Pay: The primary obligation stating the specific amount, interest rate, and payment terms

5. Guarantee Provisions: The guarantor's unconditional promise to pay and guarantee obligations

6. Payment Terms: Detailed payment schedule, method of payment, and late payment consequences

7. Events of Default: Circumstances that trigger immediate payment obligation or guarantee enforcement

8. Enforcement: Rights and remedies of the payee in case of default

9. Representations and Warranties: Statements of fact by both maker and guarantor regarding their capacity and authority

10. Notice Requirements: Process for giving notices between parties

11. Governing Law: Specification of Nigerian law as governing law and jurisdiction