GUARANTEE AGREEMENT FOR CREDIT

WHEN TO USE THIS DOCUMENT

 This Guarantee document is as basic template agreement which allows whoever is offering credit (the creditor) to another (the debtor) to take a guarantee from a separate third party (the guarantor). The guarantor will be promising to repay the creditor if the debtor does not pay the creditor.

 This agreement can be customised so that the guarantor makes an unlimited guarantee (not limited to a specific amount of money) or alternatively it can be limited to a maximum specified sum of money (e.g. limited to £1,000).

 The agreement also means that the creditor is not obliged to pursue the debtor directly or at first if they fail to pay but can enforce the guarantee by demanding that the guarantor make repayment.

 The guarantor can end the guarantee by giving 14 days notice to the creditor. However, the guarantor will still be liable for guaranteeing repayment of any credit that the creditor has given to the debtor until that 14 days notice period has passed.

It is suitable for use England, Wales and Scotland.

THIS DOCUMENT CONTAINS THE FOLLOWING:-

• Obligations
• Ability to customise for unlimited or limited amounts of credit
• Terms of guarantee
• Guarantor’s obligations
• Termination

DO NOT USE THIS DOCUMENT IF YOU

• Intend to create any form of actual credit agreement rather than a  guarantee
• Want to create a guarantee for anything other than the repayment of money
• Need specialist documents for complex guarantees

 Please note that this guarantee document does not include the actual credit agreement between the creditor and the customer.

HOW TO USE THIS DOCUMENT

 This is a MS Word document and is easy to use. The document uses blue text to provide extra guidance and notes and green text where you will customise your document to suit the circumstances in which it is used.
 

File Type: Word File