Declaration From A Guarantor Template for United States

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Key Requirements PROMPT example:

Declaration From A Guarantor

"I need a Declaration from a Guarantor document for three corporate guarantors jointly guaranteeing a $5 million equipment lease agreement, where the guarantors are subsidiaries of our parent company and the guarantee needs to be effective from March 1, 2025."

Document background
The Declaration From A Guarantor serves as a critical risk mitigation tool in various financial and commercial transactions within the United States legal framework. This document is typically required when a primary borrower or contractual party may not meet all the creditor's requirements independently, necessitating additional security through a guarantee. The declaration formally establishes the guarantor's commitment and includes specific details about the guaranteed obligations, enforcement conditions, and the extent of the guarantor's liability. It must comply with both federal regulations (such as the Equal Credit Opportunity Act and Truth in Lending Act) and state-specific requirements regarding contract formation and enforcement. The document is commonly used in business loans, commercial leases, and other significant financial transactions where additional security is required beyond the primary obligor's commitments.
Suggested Sections

1. Declaration Date and Parties: Identifies the guarantor, the creditor, and the primary debtor, including full legal names and addresses

2. Background: Explains the context of the guarantee, including reference to the primary obligation being guaranteed

3. Definitions: Defines key terms used throughout the declaration

4. Guarantee and Indemnity: The core declaration of guarantee, stating the scope and nature of the guarantee being provided

5. Extent of Liability: Clearly defines the maximum amount guaranteed and whether it includes interest, costs, and expenses

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

7. Guarantor's Confirmations: Statements confirming the guarantor's capacity, authority, and understanding of the obligations

8. Enforcement Rights: Details the circumstances under which the guarantee can be enforced

9. Execution: Signature block with attestation language and notarization requirements

Optional Sections

1. Security Provisions: Required when specific assets are being pledged as security for the guarantee

2. Multiple Guarantors: Required when there is more than one guarantor, defining joint and several liability

3. Corporate Authority: Required for corporate guarantors, including corporate resolutions and authority confirmations

4. Spousal Consent: Required in community property states or when spousal rights may affect the guarantee

5. Financial Covenants: Optional section for maintaining certain financial conditions throughout the guarantee period

6. Subordination Provisions: Required when the guarantee needs to be subordinated to other obligations

Suggested Schedules

1. Schedule A - Primary Obligation: Details of the primary debt or obligation being guaranteed, including payment terms

2. Schedule B - Secured Assets: Description of any assets pledged as security for the guarantee (if applicable)

3. Schedule C - Financial Statements: Current financial statements or net worth statements of the guarantor

4. Appendix 1 - Corporate Resolution: Copy of corporate resolution authorizing the guarantee (for corporate guarantors)

5. Appendix 2 - Supporting Documents: Copies of relevant identification documents, proof of address, or other supporting documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Real Estate

Commercial Lending

Retail

Manufacturing

Construction

Professional Services

Healthcare

Technology

Educational Institutions

Hospitality

Small Business

Relevant Teams

Legal

Finance

Credit and Risk

Compliance

Commercial Banking

Corporate Banking

Business Development

Account Management

Treasury

Underwriting

Relevant Roles

Credit Manager

Risk Assessment Officer

Commercial Loan Officer

Legal Counsel

Compliance Officer

Chief Financial Officer

Credit Analyst

Account Manager

Underwriting Manager

Contract Administrator

Corporate Secretary

Treasury Manager

Business Development Manager

Relationship Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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