Corporate Guaranty
(Short Form)


Summary

This template is a short form corporate guaranty which is used when a corporate guarantor guarantees the payment obligations of another party (a corporate borrower) pursuant to a note agreement if the borrower defaults. A lender may require a guaranty before the lender is willing to provide financing to the borrower. This template includes practical guidance, drafting notes, and optional clauses. This guaranty template gives broad discretion to the lender. Counsel for the guarantor(s) and lender should consider whether a long-form guaranty would be more appropriate in protecting the interests of the parties. For long-form guaranties, see Guaranty Agreement (Recourse Obligations) (Construction Loan), Guaranty Agreement (Repayment Obligations) (Construction Loan), Personal Guaranty (Secured Loan Transaction), and Subsidiary Guaranty. For further information on guaranties, see Enforceability and Types of Guaranties and Guaranties Resource Kit.