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Personal Guarantee Loan Agreement for the United States

Personal Guarantee Loan Agreement Template for United States

A Personal Guarantee Loan Agreement is a legally binding document used in the United States that combines a loan agreement with a personal guarantee. It establishes the terms of a loan while simultaneously incorporating a guarantee from a third party who agrees to be personally responsible for the debt if the primary borrower defaults. The agreement must comply with federal lending laws, state-specific usury regulations, and the Uniform Commercial Code.

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Personal Guarantee Loan Agreement

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What is a Personal Guarantee Loan Agreement?

The Personal Guarantee Loan Agreement serves as a critical financial instrument in situations where additional security is required beyond the primary borrower's commitment. Commonly used in the United States for business loans, startup financing, and real estate transactions, this agreement provides lenders with added security by making a third party personally liable for the debt. The document typically includes detailed loan terms, repayment schedules, default provisions, and specific guarantee obligations, all while ensuring compliance with federal and state lending regulations. It's particularly valuable when dealing with new businesses, borrowers with limited credit history, or high-risk loans.

What sections should be included in a Personal Guarantee Loan Agreement?

1. Parties: Identification of lender, borrower, and guarantor with full legal names and addresses

2. Background: Context of the loan and guarantee arrangement, including purpose of the loan

3. Definitions: Key terms used throughout the agreement including Loan, Guarantee, Default, etc.

4. Loan Terms: Principal amount, interest rate, repayment schedule, and term of the loan

5. Guarantee Provisions: Scope and nature of the guarantee, including guarantor's obligations and liability

6. Representations and Warranties: Statements of fact by guarantor regarding their financial status and capacity

7. Events of Default: Circumstances constituting default under the agreement

8. Remedies: Lender's rights and remedies upon default, including enforcement procedures

9. Governing Law: Specification of applicable state law and jurisdiction

What sections are optional to include in a Personal Guarantee Loan Agreement?

1. Security Provisions: Details of any collateral or security provided to support the guarantee

2. Insurance Requirements: Specifications for required insurance coverage on secured assets or life insurance

3. Financial Covenants: Ongoing financial requirements and reporting obligations of the guarantor

4. Assignment and Transfer: Rights and restrictions regarding assignment of the guarantee

What schedules should be included in a Personal Guarantee Loan Agreement?

1. Schedule A - Payment Schedule: Detailed repayment terms, amounts, and due dates

2. Schedule B - Asset Schedule: Itemized list of any secured assets including descriptions and values

3. Schedule C - Financial Statements: Current financial statements and net worth declaration of the guarantor

4. Schedule D - Notice Requirements: Contact information and procedures for formal notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Clauses
























Industries

Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms and standardized calculation of annual percentage rates for consumer loans

Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance

Fair Credit Reporting Act (FCRA): Federal law regulating the collection, dissemination, and use of consumer credit information

Federal Trade Commission Act: Federal law prohibiting unfair or deceptive practices in commerce, including lending practices

Consumer Credit Protection Act: Federal law providing a comprehensive framework for consumer credit rights and protections

State Usury Laws: State-specific laws setting maximum interest rates and terms for loans

State Contract Laws: State-specific regulations governing contract formation, enforcement, and remedies

State Consumer Protection Laws: State-specific laws protecting consumers from unfair lending practices and providing additional rights

Statute of Frauds: Legal requirement that certain contracts, including guarantees, must be in writing and signed to be enforceable

UCC Article 3: Uniform Commercial Code provisions governing negotiable instruments and promissory notes

UCC Article 9: Uniform Commercial Code provisions governing secured transactions and collateral

Contract Formation Requirements: Legal principles requiring offer, acceptance, and consideration for valid contract formation

Capacity to Contract: Legal requirement that parties must have legal capacity to enter into binding contracts

Unconscionability Doctrine: Legal principle protecting against grossly unfair or one-sided contract terms

Bankruptcy Code Provisions: Federal laws governing the treatment of personal guarantees and loans in bankruptcy proceedings

Documentation Requirements: Essential elements required in the agreement including party identification, terms, payment provisions, default clauses, remedies, and notice requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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