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.
A New Mexico Guaranty of Collection of Promissory Note is a legally binding document that serves as a guarantee for the payment and collection of a promissory note in the state of New Mexico. This agreement involves three parties: the borrower, the lender, and the guarantor. The guarantor acts as a secondary source of payment in case the borrower defaults on the promissory note. The New Mexico Guaranty of Collection of Promissory Note outlines the terms and conditions of the guarantee, including the obligations and responsibilities of each party involved. It ensures that the lender has an additional form of security to collect the debt owed under the promissory note. Keywords: New Mexico, Guaranty, Collection, Promissory Note, legally binding, document, payment, borrower, lender, guarantor, secondary source, default, terms, conditions, obligations, responsibilities, security, debt. Different types of New Mexico Guaranty of Collection of Promissory Note may include: 1. Limited Guaranty of Collection of Promissory Note: This type of guaranty specifies certain limitations and conditions that narrow down the guarantor's liability towards the collection of the promissory note. It defines situations and scenarios where the guarantor's obligation is limited or may not apply. 2. Unconditional Guaranty of Collection of Promissory Note: Unlike the limited guaranty, this type of agreement places no restrictions on the guarantor's liability. The guarantor becomes fully responsible for the payment and collection of the promissory note in case of the borrower's default, regardless of any underlying circumstances. 3. Corporate Guaranty of Collection of Promissory Note: This specific form of guaranty involves a corporate entity acting as the guarantor instead of an individual. It guarantees the payment and collection of the promissory note using the assets and resources of the corporation. 4. Personal Guaranty of Collection of Promissory Note: In contrast to the corporate guaranty, this type involves an individual acting as the guarantor. The individual becomes personally liable for the debt owed under the promissory note and ensures its collection. 5. Continuing Guaranty of Collection of Promissory Note: This type of guaranty extends beyond a single promissory note. It remains in effect for future promissory notes, providing ongoing assurance of payment and collection. 6. Limited Liability Company (LLC) Guaranty of Collection of Promissory Note: In cases where the borrower is an LLC, this type of guaranty involves another LLC acting as the guarantor. It establishes the responsibilities and obligations of the guarantor in ensuring the collection of the promissory note. Note: It is essential to consult an attorney or legal professional experienced in New Mexico law to ensure that the Guaranty of Collection of Promissory Note adheres to all relevant legal requirements and accurately reflects the intentions of the parties involved.A New Mexico Guaranty of Collection of Promissory Note is a legally binding document that serves as a guarantee for the payment and collection of a promissory note in the state of New Mexico. This agreement involves three parties: the borrower, the lender, and the guarantor. The guarantor acts as a secondary source of payment in case the borrower defaults on the promissory note. The New Mexico Guaranty of Collection of Promissory Note outlines the terms and conditions of the guarantee, including the obligations and responsibilities of each party involved. It ensures that the lender has an additional form of security to collect the debt owed under the promissory note. Keywords: New Mexico, Guaranty, Collection, Promissory Note, legally binding, document, payment, borrower, lender, guarantor, secondary source, default, terms, conditions, obligations, responsibilities, security, debt. Different types of New Mexico Guaranty of Collection of Promissory Note may include: 1. Limited Guaranty of Collection of Promissory Note: This type of guaranty specifies certain limitations and conditions that narrow down the guarantor's liability towards the collection of the promissory note. It defines situations and scenarios where the guarantor's obligation is limited or may not apply. 2. Unconditional Guaranty of Collection of Promissory Note: Unlike the limited guaranty, this type of agreement places no restrictions on the guarantor's liability. The guarantor becomes fully responsible for the payment and collection of the promissory note in case of the borrower's default, regardless of any underlying circumstances. 3. Corporate Guaranty of Collection of Promissory Note: This specific form of guaranty involves a corporate entity acting as the guarantor instead of an individual. It guarantees the payment and collection of the promissory note using the assets and resources of the corporation. 4. Personal Guaranty of Collection of Promissory Note: In contrast to the corporate guaranty, this type involves an individual acting as the guarantor. The individual becomes personally liable for the debt owed under the promissory note and ensures its collection. 5. Continuing Guaranty of Collection of Promissory Note: This type of guaranty extends beyond a single promissory note. It remains in effect for future promissory notes, providing ongoing assurance of payment and collection. 6. Limited Liability Company (LLC) Guaranty of Collection of Promissory Note: In cases where the borrower is an LLC, this type of guaranty involves another LLC acting as the guarantor. It establishes the responsibilities and obligations of the guarantor in ensuring the collection of the promissory note. Note: It is essential to consult an attorney or legal professional experienced in New Mexico law to ensure that the Guaranty of Collection of Promissory Note adheres to all relevant legal requirements and accurately reflects the intentions of the parties involved.
