A Co-Guarantor Agreement is essential when multiple parties wish to jointly guarantee financial or performance obligations. This document, governed by English and Welsh law, is commonly used in commercial lending, property transactions, and business arrangements where additional security is required. The agreement details the extent of guarantors' liability, their rights against each other, and the circumstances under which the guarantee can be enforced. It protects both the creditor's interests and regulates the relationship between co-guarantors, including their rights of contribution and indemnity.
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1. Parties: Identifies all co-guarantors and the creditor
2. Background: Explains context of guarantee and primary obligation being guaranteed
3. Definitions: Defines key terms used throughout agreement
4. Guarantee and Indemnity: Core obligations of co-guarantors
5. Nature of Liability: Defines joint and several liability of co-guarantors
6. Payment Provisions: Terms for making payments under guarantee
7. Duration: Term of guarantee and conditions for termination
8. Governing Law and Jurisdiction: Specifies applicable law and courts
1. Security Provisions: Additional provisions when specific assets are provided as security by the guarantors
2. Assignment: Provisions governing the rights to transfer guarantee obligations to other parties
3. Representations and Warranties: Additional confirmations and statements from guarantors, typically used in complex commercial arrangements
1. Schedule 1 - Guaranteed Obligations: Detailed description of the primary obligations being guaranteed
2. Schedule 2 - Security Assets: Comprehensive list of any assets provided as security under the guarantee
3. Schedule 3 - Notice Details: Contact information and notice requirements for all parties
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