Personal Guarantee Agreement Template for Ireland

A Personal Guarantee Agreement is a crucial document in Irish business and financial transactions, commonly used when a company or individual (the principal debtor) requires credit or financing but the creditor requires additional security. The document is particularly relevant in situations involving business loans, property transactions, or significant commercial agreements where personal assurance is needed beyond corporate securities. Under Irish law, these agreements must comply with specific regulatory requirements, including those set out in the Consumer Credit Act 1995 and various consumer protection regulations. The agreement details the guarantor's obligations, enforcement mechanisms, and any limitations on liability, while incorporating mandatory consumer protections and disclosure requirements specific to Irish law. It's essential for securing various types of financial arrangements while ensuring both the creditor's interests and the guarantor's rights are properly addressed.

1. Parties: Identifies the Guarantor (individual providing the guarantee), the Creditor (party receiving the guarantee), and the Principal Debtor (party whose obligations are being guaranteed)

2. Background: Sets out the context of the guarantee, including details of the principal debt or obligation being guaranteed

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Event of Default', and other relevant terms

4. Guarantee and Indemnity: Core section detailing the guarantee obligations, including both primary guarantee and indemnity provisions

5. Extent and Limits of Guarantee: Specifies the scope of the guaranteed obligations and any monetary or temporal limits

6. Guarantor's Representations and Warranties: Statements and assurances from the guarantor about their capacity and authority to enter into the guarantee

7. Continuing Security: Confirms that the guarantee is continuing and covers all existing and future obligations within its scope

8. Preservation of Rights: Provisions maintaining the creditor's rights in various circumstances, including if the principal debt is varied

9. Demands and Payments: Procedures for making demands under the guarantee and requirements for payment

10. Costs and Expenses: Allocation of costs related to the preparation, enforcement, and preservation of the guarantee

11. Governing Law and Jurisdiction: Specifies Irish law as governing law and Irish courts' jurisdiction