Loan Guarantee Form Template for England and Wales

A Loan Guarantee Form is essential in lending arrangements where additional security is required beyond the principal debtor's commitments. Under English and Welsh law, this document creates a secondary obligation where the guarantor agrees to fulfill the principal debtor's obligations if they default. The form must comply with the Statute of Frauds 1677 and includes detailed provisions about the guarantee's scope, duration, and enforcement mechanisms. It's commonly used in commercial lending, property transactions, and corporate finance where lenders seek additional security for their loans.

1. Parties: Identifies all parties to the guarantee including creditor, guarantor, and principal debtor

2. Background: Sets out the context of the underlying loan and reason for guarantee

3. Definitions: Defines key terms used throughout the guarantee

4. Guarantee and Indemnity: Core provisions setting out the guarantee obligations

5. Scope of Guarantee: Defines extent and limitations of guaranteed obligations

6. Duration: Period of effectiveness of the guarantee

7. Guarantor's Obligations: Detailed responsibilities and commitments of the guarantor

8. Enforcement: Circumstances and process for enforcing the guarantee