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The Guarantee in Loan Agreement is a crucial security document in South African lending transactions, providing additional assurance to lenders by introducing a third party who guarantees the borrower's obligations. This document type is commonly used in both commercial and consumer lending contexts, where the lender requires additional security beyond the borrower's own covenant. It must comply with South African legislation, particularly the National Credit Act 34 of 2005, the Consumer Protection Act 68 of 2008, and when corporate guarantors are involved, the Companies Act 71 of 2008. The document becomes especially relevant in scenarios where the borrower's creditworthiness alone may not satisfy the lender's requirements, or where group companies provide cross-guarantees for corporate lending arrangements.

1. Parties: Identification of the Lender, Borrower, and Guarantor with their full legal details

2. Background: Context of the loan agreement and the reason for the guarantee

3. Definitions: Defined terms used throughout the agreement, including 'Guaranteed Obligations', 'Security', and 'Event of Default'

4. Guarantee: Core guarantee provisions, including scope of guarantee and nature (conditional/unconditional)

5. Duration: Term of the guarantee and conditions for termination

6. Guarantor's Obligations: Specific obligations and undertakings of the guarantor

7. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial status

8. Independence of Guarantee: Provisions establishing guarantee as independent from main loan agreement

9. Preservation of Rights: Lender's rights preservation and waiver of guarantor's defenses

10. Payments: Payment mechanisms, currency, and treatment of tax

11. Costs and Expenses: Allocation of costs related to preparation and enforcement

12. Notices: Communication procedures between parties

13. General Provisions: Standard boilerplate clauses including governing law and jurisdiction