Promissory Note Guaranty Template for United Arab Emirates

The Promissory Note Guaranty is commonly used in UAE commercial transactions where additional security is required for a promissory note obligation. This document is particularly relevant in situations involving commercial lending, trade finance, or business transactions where the creditor seeks additional assurance beyond the principal debtor's commitment. The guarantee must comply with UAE Federal Laws, including both Civil and Commercial Codes, and typically includes detailed provisions regarding the scope of the guarantee, payment terms, and enforcement mechanisms. The document is especially important in the UAE business environment, where promissory notes are widely used as security instruments, and guarantees provide an additional layer of protection for creditors.

1. Parties: Identification of the Guarantor, the Holder (Beneficiary) of the promissory note, and the Maker of the promissory note

2. Background: Brief description of the underlying promissory note and the context of the guarantee

3. Definitions: Key terms used in the document including 'Promissory Note', 'Principal Obligation', 'Guaranteed Amount'

4. Guarantee: The core guarantee provision where the guarantor unconditionally guarantees payment of the promissory note

5. Scope of Guarantee: Detailed description of what is covered by the guarantee, including principal, interest, and other charges

6. Nature of Guarantee: Specification that this is a continuing, irrevocable, and binding guarantee

7. Payment Terms: Terms and conditions for payment under the guarantee, including timing and method

8. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

9. Enforcement: Rights of the beneficiary to enforce the guarantee and the process thereof

10. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and specification of jurisdiction for disputes