Louisiana Guaranty of Promissory Note by Corporation - Corporate Borrower

• Category: Promissory Notes - Guaranty
• State: Multi-State
• Control #: US-00527C
• Format: Word; Rich Text

Description

This form states that in order to get the borrower to enter into certain promissory notes, the corporate guarantor unconditionally and absolutely guarantees to payees, jointly and severally, the full and prompt payment and performance by the borrower of all of its obligations under and pursuant to the promissory notes, together with the full and prompt payment of any and all costs and expenses of and incidental to the enforcement of this Guaranty, including, without limitation, reasonable attorneys' fees.

The Louisiana Guaranty of Promissory Note by Corporation — Corporate Borrower is a legal document that serves as a guarantee from a corporation (the guarantor) to repay a promissory note on behalf of another corporation (the borrower). This specific type of guaranty is drafted in accordance with the laws and regulations of the state of Louisiana. The purpose of this guaranty is to protect the lender in case the borrower corporation defaults on its payment obligations under the promissory note. By signing this document, the guarantor corporation agrees to be fully responsible for the payment of the outstanding debt on the promissory note if the borrower is unable to fulfill its financial obligations. This Louisiana guaranty typically contains several key clauses and provisions, including: 1. Identification of Parties: It clearly identifies the parties involved in the agreement, such as the guarantor corporation, borrower corporation, and lender. 2. Recitals: This section provides background information about the promissory note, including the date of execution and the principal amount of the loan. 3. Guarantee: The guarantor corporation explicitly guarantees the performance and payment obligations of the borrower corporation with respect to the promissory note. It ensures that the lender has a secondary source of repayment in case the borrower defaults. 4. Waiver of Rights: The guarantor corporation waives any rights it may have against the borrower, such as the right to seek reimbursement or subrogation until the obligation under the promissory note is fully satisfied. 5. Consent: Often, this guaranty requires the consent of the lender before any changes to the promissory note or the borrower corporation's obligations can be made. 6. Governing Law: As this document is specific to Louisiana, it will state that it is governed by the laws of the state. There may be variations of this guaranty depending on specific circumstances or the preferences of the parties involved. Some variations could include a Limited Guaranty, where the guarantor's liability is limited to a specific amount or timeframe, or a Continuing Guaranty, where the guarantor's liability extends to all present and future obligations of the borrower. In conclusion, the Louisiana Guaranty of Promissory Note by Corporation — Corporate Borrower is a legal document used to secure the repayment of a promissory note by a corporation. It establishes the guarantor corporation's responsibility for the payment of the debt if the borrower defaults, ensuring the lender has a secondary source of repayment. Variations of this guaranty may exist, such as Limited Guaranty or Continuing Guaranty, depending on the specific circumstances of the agreement.