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Guaranty Form Template for Philippines

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Key Requirements PROMPT example:

Guaranty Form

"I need a Guaranty Form for our manufacturing company to guarantee a PHP 5 million business loan that our subsidiary is taking from ABC Bank, with the guarantee period starting March 1, 2025; the form should include corporate authority provisions and multiple guarantor clauses as two of our board members will also act as personal guarantors."

Document background
The Guaranty Form is a crucial legal instrument in Philippine business and financial transactions, designed to provide additional security for creditors by having a third party (guarantor) assume responsibility for another's obligations. This document type is commonly used in various scenarios including loan agreements, lease contracts, and commercial transactions where credit risk needs to be mitigated. The form must comply with the Civil Code of the Philippines and related legislation, particularly regarding contract formation and guaranty-specific provisions. It typically includes detailed information about the guaranteed obligations, conditions for enforcement, and the extent of the guarantor's liability. The document becomes especially important in situations where the principal debtor's creditworthiness alone may not be sufficient to secure the transaction.
Suggested Sections

1. Parties: Identifies the Guarantor, the Creditor, and references the Principal Debtor

2. Background: Describes the underlying obligation being guaranteed and the relationship between the parties

3. Definitions: Defines key terms used throughout the guaranty agreement

4. Scope of Guaranty: Clearly defines the extent and nature of the guaranteed obligations

5. Guarantor's Obligations: Details the specific obligations and commitments of the guarantor

6. Representations and Warranties: Guarantor's confirmations regarding their capacity and authority to enter into the guaranty

7. Duration of Guaranty: Specifies the term of the guaranty and conditions for its continuation

8. Demand and Payment: Procedures for making demands under the guaranty and payment terms

9. Waiver of Defenses: Standard waivers of legal defenses available to guarantors

10. Governing Law and Jurisdiction: Specifies Philippine law as governing law and sets jurisdiction for disputes

11. Execution: Formal execution block including notarization requirements

Optional Sections

1. Multiple Guarantors: Required when there is more than one guarantor, specifying joint and several liability

2. Security Provisions: Include when the guaranty is secured by specific assets or collateral

3. Step-In Rights: Optional provisions allowing the guarantor to step into the position of the creditor in certain circumstances

4. Corporate Authority: Required when the guarantor is a corporation, including board resolutions and corporate approvals

5. Assignment and Transfer: Include if the guaranty may be assigned or transferred to other parties

6. Indemnity Provisions: Additional indemnification obligations beyond the basic guaranty

7. Financial Covenants: Include when ongoing financial requirements are imposed on the guarantor

Suggested Schedules

1. Schedule of Guaranteed Obligations: Detailed list of the specific obligations being guaranteed, particularly useful for multiple or complex obligations

2. Schedule of Security: Description of any security or collateral provided to support the guaranty

3. Corporate Authorizations: Copies of relevant board resolutions and corporate approvals when the guarantor is a corporation

4. Form of Demand: Standard form for making demands under the guaranty

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 Financial Services

Real Estate

Construction

Manufacturing

Retail

Import/Export

Agriculture

Technology

Telecommunications

Energy

Infrastructure

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Corporate Secretariat

Credit Administration

Commercial Operations

Relevant Roles

Chief Financial Officer

Finance Manager

Credit Risk Manager

Legal Counsel

Corporate Secretary

Compliance Officer

Commercial Director

Treasury Manager

Contract Administrator

Risk Management Officer

Banking Relationship Manager

Corporate Lawyer

Financial Controller

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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