Personal Guarantor Form Template for Pakistan

The Personal Guarantor Form is a crucial legal instrument in Pakistani banking and financial transactions, designed to provide additional security for creditors by having a third party guarantee the obligations of a principal debtor. This document is commonly used when extending credit facilities, loans, or other financial accommodations where the creditor requires additional assurance beyond the primary security. The form must comply with the Contract Act 1872 and the Financial Institutions (Recovery of Finances) Ordinance 2001, ensuring enforceability within the Pakistani legal system. It typically includes detailed provisions about the guarantee's scope, enforcement mechanisms, and the guarantor's obligations, making it essential for various commercial and financial transactions where personal guarantees are required as collateral support.

1. Parties: Identifies all parties: the Guarantor (person providing the guarantee), the Creditor (person/entity receiving the guarantee), and the Principal Debtor (person/entity whose obligations are being guaranteed)

2. Background: Explains the context of the guarantee, including the primary obligation being guaranteed and the relationship between parties

3. Definitions: Defines key terms used throughout the guarantee document

4. Guarantee and Indemnity: Core section detailing the scope of the guarantee and indemnity being provided

5. Extent of Liability: Specifies the maximum amount guaranteed and nature of the guaranteed obligations

6. Duration of Guarantee: Specifies when the guarantee becomes effective and when it terminates

7. Guarantor's Representations and Warranties: Statements by the guarantor about their capacity and authority to provide the guarantee

8. Guarantor's Obligations: Details the specific obligations and responsibilities of the guarantor

9. Enforcement and Recovery: Explains when and how the guarantee can be enforced

10. Notices: Specifies how formal communications between parties should be made

11. Governing Law and Jurisdiction: Confirms Pakistani law as governing law and specifies jurisdiction for disputes