Corporate Guaranty
(Short Form)


This short form guaranty is to be used when a corporate guarantor agrees to assume 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 form includes practical guidance, drafting notes, and optional clauses.This guaranty form gives broad discretion to the lender. Counsel for the guarantor(s) should consider whether a long-form guaranty would be more appropriate in protecting the interests of the parties and whether a long-form guaranty would be acceptable to the lender. For long-form guaranties, see Guaranty Agreement (Recourse Obligations), Guaranty Agreement (Repayment Obligations), Personal Guaranty (Secured Loan Transaction), and Subsidiary Guaranty. For further information on drafting a guaranty, see the practice note What Is a Guaranty, and Why Does a Creditor Require It?.