Free Personal Guarantee Template

LIMITED PERSONAL GUARANTY

This Guaranty is made on [DATE] by [GUARANTOR NAME], [ADDRESS] ("Guarantor"), in favor of [LANDLORD / LENDER NAME] ("Beneficiary").

1. GUARANTEED OBLIGATION. Guarantor guarantees payment of the obligations of [BUSINESS NAME] ("Obligor") under the [lease / loan agreement] dated [DATE] for [PREMISES ADDRESS / LOAN AMOUNT] ("Agreement"), subject to the limits in this Guaranty.

2. CAP. Guarantor's total liability under this Guaranty will not exceed [AMOUNT / [NUMBER] months of base rent at the rate then in effect], plus reasonable collection costs up to [AMOUNT].

3. BURN-DOWN [OPTIONAL]. If Obligor has made all payments on time for [24] consecutive months, the cap will reduce to [AMOUNT] [and this Guaranty will end after [36] months of timely payment].

4. GOOD-GUY RELEASE [LEASES]. Guarantor's liability for rent accruing after the Surrender Date will end if Obligor: (a) gives at least [90] days' written notice of intent to vacate; (b) pays all rent and charges through the Surrender Date; and (c) vacates and returns the premises in the condition required by the Agreement and delivers the keys on the date stated in the notice ("Surrender Date").

5. TERM. This Guaranty ends on the earlier of: (a) [DATE]; (b) the end of the initial term of the Agreement, not including renewals or extensions unless Guarantor signs a new guaranty; or (c) a release under Section 3 or 4. Guarantor remains liable for amounts that accrued before termination, up to the cap.

6. NOTICE OF DEFAULT. Beneficiary will give Guarantor written notice of any default by Obligor within [15] days after it occurs, and Guarantor may cure it within [15] days of the notice.

7. CHANGES TO THE AGREEMENT. Any amendment that increases the obligations, extends the term or adds premises or loan amounts will not bind Guarantor without Guarantor's written consent.

8. SALE OR ASSIGNMENT. If Obligor assigns the Agreement with Beneficiary's consent to a buyer that provides a replacement guaranty or security of at least equal value, Guarantor will be released from obligations accruing after the assignment.

9. DEFENSES. Guarantor retains all defenses available to Obligor, except those based on Obligor's bankruptcy or lack of capacity. [Delete if the parties agree to an unconditional guaranty.]

10. FINANCIAL INFORMATION. Guarantor will provide [annual personal financial statements] on request, which Beneficiary will keep confidential.

11. GOVERNING LAW. This Guaranty is governed by the laws of [STATE].

GENERAL PROVISIONS
(a) Notices. Notices must be in writing and sent to the addresses or emails above (or as later updated by notice). Email notice is effective when sent, unless the sender receives a delivery failure message.
(b) Entire agreement. This agreement, with any schedules and exhibits, is the entire agreement between the parties on its subject and replaces all prior discussions and agreements on that subject.
(c) Amendments and waivers. Changes must be in writing and signed by both parties. A failure or delay in enforcing any term is not a waiver of it.
(d) Severability. If any provision is found unenforceable, it will be limited to the minimum extent necessary and the rest of this agreement will remain in effect.
(e) Assignment. Neither party may assign this agreement without the other party's written consent, except to a successor in a merger or sale of substantially all of its business, on notice.
(f) Relationship. Nothing in this agreement creates a partnership, joint venture or agency relationship unless expressly stated.
(g) Counterparts and electronic signatures. This agreement may be signed in counterparts and by electronic signature, each of which is an original and together form one agreement.
(h) Independent advice. Each party has had the opportunity to review this agreement with its own legal counsel and signs it voluntarily.

GUARANTOR: ___________________  Date: __________
[SPOUSE CONSENT, IF REQUIRED IN COMMUNITY PROPERTY STATES]: ____________  Date: __________
BENEFICIARY: _________________  Date: __________

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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.