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A Release of Personal Guaranty is typically used when a creditor agrees to discharge a guarantor from their obligations under a personal guarantee, either due to the satisfaction of the underlying debt, restructuring of facilities, or as part of a negotiated settlement. This document is particularly important in the Saudi Arabian business environment, where personal guarantees are frequently required for commercial financing. The release must be drafted in compliance with Saudi law and Sharia principles, containing specific references to the original guarantee, clear release language, and proper authentication. It's commonly used in situations where the primary debtor has fulfilled their obligations, the business relationship has concluded, or when there's a transfer of guarantor responsibilities. The document needs to meet the requirements of the Saudi Arabian Monetary Authority (SAMA) and local courts to be legally enforceable.

1. Letter Header: Include date, reference number, and formal letterhead of the releasing party

2. Addressee Details: Full name and address of the guarantor being released

3. Reference to Original Guarantee: Specific details of the original personal guarantee including date, parties, and amount

4. Declaration of Release: Clear and unequivocal statement releasing the guarantor from their obligations

5. Effective Date: Specific date from which the release takes effect

6. Authentication: Signature block, official stamp, and any required notarization details