Agreement Of Personal Guaranty Template for Netherlands

The Agreement Of Personal Guaranty is a crucial document in Dutch business and financial transactions, commonly used when additional security is required for loans, credit facilities, or other financial obligations. This document is particularly important in the Netherlands, where specific legal requirements under the Dutch Civil Code must be met for the guarantee to be enforceable. The agreement needs to clearly specify the maximum liability amount, especially when the guarantor is a natural person, and must include mandatory warning statements as required by Dutch law. It's typically used in situations where a lender or creditor requires additional assurance beyond the primary debtor's commitment, such as in business loans, property leases, or supplier contracts. The document must comply with both Dutch national law and relevant EU regulations, particularly regarding consumer protection when the guarantor is an individual not acting in a professional capacity.

1. Parties: Identification of the Guarantor, the Creditor, and the Primary Debtor, including full legal names and addresses

2. Background: Context of the guarantee, including reference to the primary obligation being guaranteed and the relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement, including 'Guaranteed Obligations', 'Event of Default', and 'Maximum Liability Amount'

4. Guarantee: Core provision establishing the guarantee, its scope, and the nature of the guarantor's obligations

5. Maximum Liability Amount: Clear statement of the maximum amount for which the guarantor can be held liable, as required by Dutch law

6. Nature of Guarantee: Specification that this is a continuing guarantee and the extent of the guarantor's liability

7. Guarantor's Representations and Warranties: Guarantor's confirmations regarding capacity, understanding, and financial ability to provide the guarantee

8. Creditor's Rights and Remedies: Rights of the creditor in case of default, including enforcement procedures

9. Payment Terms: Specification of how and when payments must be made under the guarantee

10. Duration and Termination: Term of the guarantee and circumstances under which it can be terminated

11. Notices: Process and requirements for formal communications between parties

12. Governing Law and Jurisdiction: Confirmation of Dutch law as governing law and jurisdiction for disputes

13. Execution: Signature blocks and execution requirements