Loan Guarantor Agreement Template

A loan guarantor agreement is a formal contract that outlines the responsibilities and obligations of a guarantor when providing security for a loan. This template provides a structured format for creating such an agreement and ensures that all essential aspects are covered.

Loan Guarantor Agreement

This Loan Guarantor Agreement (the "Agreement") is made and entered into as of [Date], by and between:

Borrower: [Borrower's Full Name], residing at [Borrower's Address]
Guarantor: [Guarantor's Full Name], residing at [Guarantor's Address]
Lender: [Lender's Full Name or Company Name], with its principal place of business at [Lender's Address]

1. Definition of Terms

In this Agreement, the following terms shall have the meanings ascribed to them:

• "Loan": The financial amount borrowed by the Borrower from the Lender, totaling [Loan Amount] with a term of [Loan Term] years.
• "Obligations": All financial and contractual responsibilities of the Borrower under the Loan agreement.
• "Guarantor": The individual or entity agreeing to guarantee the Borrower's obligations.

2. Guarantee

The Guarantor agrees to guarantee the full and prompt payment of all principal, interest, and any other charges related to the Loan in the event of the Borrower's default. The Guarantor's liability is not limited and extends to the total amount of the Loan plus any associated costs.

3. Responsibilities of the Guarantor

The Guarantor shall:

• Promptly make payments: Ensure timely payment of all obligations under the Loan if the Borrower fails to do so.
• Notify of changes: Inform the Lender of any change in personal information or circumstances that may affect the Guarantor’s ability to meet the guarantee.
• Provide documentation: Submit any additional documentation or information as requested by the Lender for verifying the Guarantor’s financial status.

4. Term and Termination

This Agreement shall commence on the date above and remain in effect until the Loan has been fully repaid or the Guarantor is released from this Agreement in writing by the Lender. The Guarantor may request termination of this Agreement, subject to the Lender’s consent and provided that all Loan obligations have been satisfied.

5. Representations and Warranties

The Guarantor represents and warrants that:

• Authority: They have full authority to enter into and execute this Agreement.
• Financial Status: They have the financial capacity to fulfill their obligations under this Agreement.
• No Conflict: This Agreement does not conflict with any other agreement or obligation to which the Guarantor is bound.

6. Indemnification

The Guarantor agrees to indemnify and hold harmless the Lender against any loss, damage, or expense incurred as a result of the Borrower's failure to meet their obligations under the Loan agreement.

7. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of [State/Country].

8. Miscellaneous

• Amendments: Any amendments to this Agreement must be made in writing and signed by all parties.
• Entire Agreement: This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements or understandings, written or oral, relating to the subject matter.

IN WITNESS WHEREOF, the parties hereto have executed this Loan Guarantor Agreement as of the date first above written.

Borrower: ___________________________
Guarantor: ___________________________
Lender: ___________________________

Witnesses (if required):
Witness 1: ___________________________
Witness 2: ___________________________