A guaranty is a contract under which one person agrees to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so. A guaranty of the payment of a debt is different from a guaranty of the collection of the debt. A guaranty of payment is absolute while a guaranty of collection is conditional.
Guam Guaranty of Collection of Promissory Note is a legal document designed to ensure the repayment of a promissory note issued by a borrower. This Guaranty serves as a guarantee to protect the lender's interests in case of default or non-payment by the borrower. Guam, a U.S. territory located in the western Pacific Ocean, follows specific regulations and laws pertaining to financial transactions, including promissory notes. A Guaranty of Collection of Promissory Note in Guam provides additional security to lenders by having a third party, the guarantor, assure the collection of the debt. There are two types of Guam Guaranty of Collection of Promissory Notes: 1. Individual Guaranty: This type of guaranty is issued by an individual, often referred to as the guarantor, who agrees to be personally liable for the repayment of the promissory note. The guarantor's personal assets can be seized if the borrower fails to repay the debt. 2. Corporate Guaranty: In this case, a corporate entity, such as a company or organization, acts as the guarantor and assumes the responsibility of repayment on behalf of the borrower. This type of guaranty provides additional protection for lenders as it holds the corporate entity accountable for the debt. Guam Guaranty of Collection of Promissory Note is a crucial document in safeguarding the lender's interests while providing financial assistance to borrowers. It outlines the terms and conditions of the guarantor's liability, including the repayment schedule, interest rates, and consequences in case of default. Keywords: Guam, Guaranty of Collection of Promissory Note, promissory note, borrower, lender, Guaranty, U.S. territory, additional security, default, non-payment, legal document, financial transactions, regulations, laws, third party, guarantor, debt, Individual Guaranty, corporate guaranty, liability, personal assets, repayment, responsibility, corporate entity, protection, terms and conditions, repayment schedule, interest rates, default consequences.
