Truth in Lending Act (TILA): Federal law that requires clear disclosure of lending terms and costs to protect consumers in credit transactions, including guarantor agreements
Fair Credit Reporting Act (FCRA): Federal legislation governing the collection, dissemination, and use of consumer credit information, relevant for credit checks on potential guarantors
Equal Credit Opportunity Act (ECOA): Federal law prohibiting discrimination in credit transactions, including the evaluation of guarantors based on protected characteristics
Federal Trade Commission Act: Federal law prohibiting unfair or deceptive practices in commerce, which applies to the terms and execution of guarantor agreements
State Contract Laws: Varying state-specific regulations governing contract formation, enforcement, and remedies that affect guarantor agreements
State Consumer Protection Laws: State-specific laws designed to protect consumers from unfair practices in financial transactions, including guarantor arrangements
State Statute of Frauds: State requirements mandating certain types of guarantees to be in writing to be legally enforceable
UCC Article 3: Uniform Commercial Code provisions governing negotiable instruments and their guarantors
UCC Article 9: Uniform Commercial Code provisions governing secured transactions and related guarantees
Consideration Doctrine: Legal requirement that all contracts, including guarantees, must be supported by valid consideration to be enforceable
Capacity to Contract: Legal doctrine requiring all parties, including guarantors, to have legal capacity to enter into binding agreements
Clear Disclosure Requirements: Legal obligations to provide clear, understandable terms and conditions in guarantor agreements
Plain Language Requirements: Legal requirements to use clear, simple language in consumer contracts, including guarantor forms
Bankruptcy Code Provisions: Federal laws governing the treatment of guarantor obligations in bankruptcy proceedings and potential discharge of obligations
