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Co Guarantor Agreement
"I need a Co-Guarantor Agreement for three family members jointly guaranteeing a PHP 5 million business loan from ABC Bank, with equal liability shares and monthly reporting requirements, to be effective from March 1, 2025."
1. Parties: Identification of all parties including the creditor, principal debtor, and all co-guarantors
2. Background: Context of the principal debt and the reason for the guarantee arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Principal Obligations: Description of the primary debt or obligation being guaranteed
5. Guarantee and Indemnity: The core guarantee provisions, including the scope and nature of the guarantee
6. Extent of Liability: Details of how liability is shared between co-guarantors, including whether it is joint and several
7. Payment Provisions: Terms governing how and when payments must be made under the guarantee
8. Rights of Contribution: Provisions governing how co-guarantors can seek contribution from each other
9. Representations and Warranties: Statements of fact and promises made by the co-guarantors
10. Duration and Release: Terms regarding how long the guarantee remains in effect and conditions for release
11. Enforcement: Procedures for enforcing the guarantee and making claims
12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction clauses
1. Security: Include when co-guarantors are providing additional security for their obligations
2. Step-In Rights: Include when co-guarantors have the right to take over the principal debt in certain circumstances
3. Currency Provisions: Include when the guarantee involves multiple currencies
4. Tax Provisions: Include when there are specific tax implications that need to be addressed
5. Assignment and Transfer: Include when rights under the guarantee may need to be transferred
6. Force Majeure: Include when specific events beyond control need to be addressed
7. Anti-Money Laundering Provisions: Include when required by banking regulations or when parties are financial institutions
1. Schedule 1 - Principal Debt Details: Detailed description of the principal debt or obligation being guaranteed
2. Schedule 2 - Co-Guarantors' Contribution Proportions: Breakdown of each co-guarantor's share of liability
3. Schedule 3 - Form of Demand: Standard form for making demands under the guarantee
4. Schedule 4 - Security Documents: List and copies of any security documents (if applicable)
5. Appendix A - Notice Details: Contact information and notice requirements for all parties
6. Appendix B - Conditions Precedent: List of conditions that must be satisfied before the guarantee becomes effective
Authors
Banking and Finance
Real Estate
Construction
Manufacturing
Retail
Infrastructure
Agriculture
Energy
Telecommunications
Mining
Transportation
Small and Medium Enterprises
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretariat
Credit Administration
Commercial Operations
Business Development
Corporate Affairs
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Secretary
Risk Manager
Credit Manager
Treasury Manager
Commercial Director
Contracts Manager
Business Development Manager
Company Director
Corporate Lawyer
Compliance Officer
Banking Officer
Senior Legal Counsel
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