Limited Recourse Guarantee Pledge Agreement

Summary

This precedent is a Limited Recourse Guarantee Pledge Agreement. It contains practical guidance and drafting notes. This precedent is intended to limit the creditor recourse against a guarantor, in an enforcement scenario, to a specific set of pledged assets. This agreement would be a condition precedent to a loan agreement and would be delivered on the closing date. This agreement significantly narrows the creditor's recourse against the limited recourse guarantor (or "Debtor" hereunder) in an enforcement scenario. For related precedents, see: Credit Agreement, Pledge Agreement, Guarantee (Bilateral Loan), Guarantee (Syndicated Loan), and Guarantee and Indemnity Agreement. For more information, see practice notes: Guarantee Claims Enforcement, Guarantor Rights and Liability under a Guarantee, Guarantee Requirements Checklist.