A corporation is an artificial person that is created by governmental action. The corporation exists in the eyes of the law as a person, separate and distinct from the persons who own the corporation (i.e., the stockholders). This means that the property of the corporation is not owned by the stockholders, but by the corporation. Debts of the corporation are debts of this artificial person, and not of the persons running the corporation or owning shares of stock in it. The shareholders cannot normally be sued as to corporate liabilities. However, in this guaranty, the stockholders of a corporation are personally guaranteeing the debt of the corporation in which they own shares.
Santa Clara, California Continuing Guaranty of Business Indebtedness By Corporate Stockholders is a legally binding agreement in which corporate stockholders assume responsibility for the debts and obligations of the business. This type of guarantee is commonly used in commercial transactions to provide additional security to lenders or creditors. The Santa Clara Continuing Guaranty of Business Indebtedness By Corporate Stockholders typically outlines the terms and conditions under which the guarantors agree to be personally liable for the debts of the business. The guaranty may specify the maximum amount for which the stockholders are liable and the duration of their obligations. In Santa Clara, California, there are different types of continuing guaranties related to business indebtedness by corporate stockholders. Some notable ones include: 1. Limited Guaranty: This type of guaranty imposes a cap on the liability of the stockholders, limiting their personal obligation to a specific amount or a defined period. Lenders or creditors often demand limited guaranties to mitigate their risk exposure. 2. Unlimited Guaranty: In contrast to limited guaranties, an unlimited guaranty leaves no restriction on the liability of the stockholders. This means they are fully responsible for all debts, regardless of the amount. Lenders might request unlimited guaranties for greater assurance of repayment. 3. Joint and Several guaranties: A joint and several guaranties holds each stockholder liable for the full debt amount, either individually or collectively. Creditors can choose to pursue any or all guarantors for the entire debt, simplifying the process of recovery. 4. Continuing Guaranty: This type of guaranty remains in effect until the business debt is fully discharged or until the guarantor's obligations are terminated according to the terms specified in the agreement. It spans the entire duration of the indebtedness and ensures ongoing protection for the creditor. Santa Clara, California Continuing Guaranty of Business Indebtedness By Corporate Stockholders is an essential legal tool that provides lenders or creditors with additional security when extending credit to businesses. It serves to protect their interests and ensure timely repayment of debts.Santa Clara, California Continuing Guaranty of Business Indebtedness By Corporate Stockholders is a legally binding agreement in which corporate stockholders assume responsibility for the debts and obligations of the business. This type of guarantee is commonly used in commercial transactions to provide additional security to lenders or creditors. The Santa Clara Continuing Guaranty of Business Indebtedness By Corporate Stockholders typically outlines the terms and conditions under which the guarantors agree to be personally liable for the debts of the business. The guaranty may specify the maximum amount for which the stockholders are liable and the duration of their obligations. In Santa Clara, California, there are different types of continuing guaranties related to business indebtedness by corporate stockholders. Some notable ones include: 1. Limited Guaranty: This type of guaranty imposes a cap on the liability of the stockholders, limiting their personal obligation to a specific amount or a defined period. Lenders or creditors often demand limited guaranties to mitigate their risk exposure. 2. Unlimited Guaranty: In contrast to limited guaranties, an unlimited guaranty leaves no restriction on the liability of the stockholders. This means they are fully responsible for all debts, regardless of the amount. Lenders might request unlimited guaranties for greater assurance of repayment. 3. Joint and Several guaranties: A joint and several guaranties holds each stockholder liable for the full debt amount, either individually or collectively. Creditors can choose to pursue any or all guarantors for the entire debt, simplifying the process of recovery. 4. Continuing Guaranty: This type of guaranty remains in effect until the business debt is fully discharged or until the guarantor's obligations are terminated according to the terms specified in the agreement. It spans the entire duration of the indebtedness and ensures ongoing protection for the creditor. Santa Clara, California Continuing Guaranty of Business Indebtedness By Corporate Stockholders is an essential legal tool that provides lenders or creditors with additional security when extending credit to businesses. It serves to protect their interests and ensure timely repayment of debts.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
