Corporate Performance Guarantee Template for United States

A Corporate Performance Guarantee is utilized when a beneficiary requires additional security for the performance or payment obligations of another party. This document is particularly relevant in commercial transactions where the financial strength or reliability of a principal debtor needs to be supplemented by a corporate guarantor. Under U.S. law, these guarantees must comply with state-specific contract requirements, the Uniform Commercial Code, and relevant federal regulations. The guarantee typically includes specific terms regarding the scope of guaranteed obligations, enforcement mechanisms, and conditions for calling upon the guarantee.

1. Parties: Identification of guarantor and beneficiary, including full legal names and addresses

2. Background: Context of the guarantee, reference to underlying obligation, and purpose of the guarantee

3. Definitions: Key terms used throughout the guarantee including 'Guaranteed Obligations', 'Event of Default', and 'Demand'

4. Guarantee and Indemnity: Core obligations of the guarantor, including scope of guarantee and indemnification provisions

5. Nature of Guarantee: Specification of whether the guarantee is a primary or secondary obligation, continuing security provisions

6. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and ability to perform obligations

7. Preservation of Rights: Provisions ensuring guarantee remains valid despite changes to underlying obligations or circumstances

8. Enforcement: Rights and remedies of the beneficiary, including demand procedures and payment obligations

9. Payments: Terms for making payments, including currency, timing, and tax provisions

10. Governing Law: Applicable law, jurisdiction, and enforcement provisions