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Co Guarantor Agreement Template for Philippines

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Key Requirements PROMPT example:

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."

Document background
The Co-Guarantor Agreement is essential in Philippine commercial transactions where multiple parties provide financial security for a principal debt or obligation. This document is commonly used in scenarios where a single guarantor's financial capacity may be insufficient, or where risk-sharing among multiple guarantors is desired. The agreement must comply with the Philippine Civil Code's provisions on guarantees and suretyship, particularly regarding formalities and enforcement. It typically includes detailed provisions on the extent of each guarantor's liability, contribution rights between co-guarantors, enforcement mechanisms, and release conditions. This type of agreement is particularly relevant in project financing, real estate developments, and large commercial loans where multiple stakeholders share the risk of default.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

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

Relevant legal definitions


































Clauses






























Relevant Industries

Banking and Finance

Real Estate

Construction

Manufacturing

Retail

Infrastructure

Agriculture

Energy

Telecommunications

Mining

Transportation

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit Administration

Commercial Operations

Business Development

Corporate Affairs

Relevant Roles

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

Industries






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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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