Savings Clause
(Guaranty Agreement)

Summary

This clause is a savings clause for use in a guaranty agreement to limit the liability amount under such guaranty. The language assumes that the guaranty is being provided in connection with a multi-lender loan transaction with an administrative agent, a domestic borrower, and either one or multiple guarantors. This clause includes practical guidance and drafting notes. For more information, see Guaranties Resource Kit and Suretyship Defenses and Bankruptcy Issues in Guaranties.