Loan Guarantee Form for the United Kingdom
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Loan Guarantee Form
"I need a Loan Guarantee Form for my company to guarantee a £500,000 business loan to our subsidiary company, with the guarantee period starting from March 2025 and lasting for 5 years."
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1. Parties: Identifies all parties to the guarantee including creditor, guarantor, and principal debtor
2. Background: Sets out the context of the underlying loan and reason for guarantee
3. Definitions: Defines key terms used throughout the guarantee
4. Guarantee and Indemnity: Core provisions setting out the guarantee obligations
5. Scope of Guarantee: Defines extent and limitations of guaranteed obligations
6. Duration: Period of effectiveness of the guarantee
7. Guarantor's Obligations: Detailed responsibilities and commitments of the guarantor
8. Enforcement: Circumstances and process for enforcing the guarantee
1. Security Provisions: Additional provisions when the guarantee is secured against specific assets
2. Multiple Guarantors: Provisions for joint and several liability when more than one guarantor exists
3. Assignment Rights: Provisions governing the rights to assign or transfer the guarantee
1. Principal Agreement: Copy or details of the underlying loan agreement
2. Security Details: Description of any security provided for the guarantee
3. Guaranteed Obligations: Detailed list of obligations covered by the guarantee
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