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Business Loan Guarantee
"I need a Business Loan Guarantee agreement for my Malaysian manufacturing company to guarantee a RM 5 million business loan for our subsidiary, with the guarantee to be effective from March 1, 2025, and secured against our factory property in Penang."
1. Parties: Identifies the guarantor, lender (creditor), and borrower (principal debtor), including their full legal names and addresses
2. Background: Sets out the context of the guarantee, including details of the underlying loan facility and the relationship between parties
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Guarantee and Indemnity: Core section establishing the guarantee obligations, including the scope and nature of the guaranteed liabilities
5. Extent of Guarantor's Liability: Specifies the maximum amount guaranteed and any limitations on the guarantor's liability
6. Continuing Security: Establishes that the guarantee remains in force until all secured obligations are fully discharged
7. Representations and Warranties: Statements of fact and assurances given by the guarantor regarding their capacity and authority
8. Payments: Details of how and when payments must be made under the guarantee
9. Enforcement: Sets out the circumstances and procedures for enforcing the guarantee
10. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee
11. Notices: Specifies how formal communications between parties should be made
12. Governing Law and Jurisdiction: Confirms Malaysian law as governing law and specifies courts having jurisdiction
1. Security: Include when the guarantee is supported by additional security such as charges over property
2. Corporate Authority: Required when the guarantor is a company, including corporate authorization provisions
3. Joint and Several Liability: Include when there are multiple guarantors
4. Assignment and Transfer: Include if the parties want to allow for transfer of rights under the guarantee
5. Independent Legal Advice: Include when the guarantor is an individual or small business to confirm they received independent advice
6. Currency Provisions: Include for facilities involving multiple currencies
7. Set-off Rights: Include when the lender wants rights to set off against guarantor's accounts
8. Force Majeure: Optional clause addressing unforeseeable circumstances preventing performance
1. Schedule 1 - Guaranteed Facility: Details of the underlying loan facility being guaranteed, including amount, term, and key conditions
2. Schedule 2 - Security Documents: List and details of any additional security documents related to the guarantee
3. Schedule 3 - Conditions Precedent: List of documents and conditions required before the guarantee becomes effective
4. Schedule 4 - Form of Demand: Template for making formal demands under the guarantee
5. Appendix A - Corporate Authorizations: Copies of relevant board resolutions and corporate authorizations where guarantor is a company
6. Appendix B - Property Details: Details of any property provided as additional security under the guarantee
Authors
Business Day
Borrower
Default Interest
Default Rate
Demand
Enforcement Action
Event of Default
Facility
Facility Agreement
Financial Indebtedness
Guarantee
Guaranteed Obligations
Guaranteed Sum
Guarantor
Identity Card
Interest Period
Lender
Material Adverse Effect
Month
Notice
Parties
Principal
Receiver
Ringgit Malaysia
Security
Security Documents
Security Interest
Secured Obligations
Stamp Duty
Tax
Working Day
Payment Obligations
Representations and Warranties
Continuing Security
Default
Enforcement
Assignment
Notices
Confidentiality
Force Majeure
Stamp Duty
Set-off Rights
Currency
Costs and Expenses
Severability
Amendments
Governing Law
Jurisdiction
Waiver
Independent Legal Advice
Joint and Several Liability
Time of Essence
Entire Agreement
Counterparts
Banking and Financial Services
Real Estate
Manufacturing
Retail
Construction
Technology
Agriculture
Healthcare
Hospitality
Transportation and Logistics
Energy
Telecommunications
Legal
Finance
Risk Management
Credit
Compliance
Corporate Secretarial
Treasury
Commercial Banking
Business Development
Chief Financial Officer
Finance Director
Legal Counsel
Corporate Lawyer
Risk Manager
Credit Manager
Commercial Banking Officer
Loan Officer
Company Director
Corporate Secretary
Business Development Manager
Treasury Manager
Compliance Officer
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