Guaranty Agreement
(Repayment Obligations) (Acquisition Loan)

Summary

This template is a Guaranty Agreement (Repayment Obligations) for use in an acquisition loan transaction where a creditworthy third-party entity (usually the borrower's parent or affiliate) agrees to guarantee the borrower's obligation to repay all indebtedness under the loan. This template includes practical guidance, drafting notes, and optional clauses. This Guaranty Agreement (Repayment Obligations) is important since many borrowers of acquisition loans are special purpose entities with no other assets except the mortgaged property. For a full listing of key content covering acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance). For a full listing of key content covering commercial real estate, see First Year Associate Resource Kit: Real Estate. For information on recourse guaranties generally, see Guaranty and Indemnification Agreements in Acquisition Loan Transactions and Developments in Recourse Carve-Out Guaranties.