Document background
A Loan Guaranty Agreement is commonly used when a lender requires additional security for a loan beyond the borrower's own covenant. Under English and Welsh law, this document creates a secondary obligation where the guarantor promises to pay or perform if the primary obligor (borrower) defaults. The agreement typically includes detailed provisions about the scope of guarantee, enforcement mechanisms, and representations and warranties. This document is particularly important in commercial lending, corporate finance, and real estate transactions where additional security is required.
