Rhode Island Guaranty of Promissory Note by Individual - Corporate Borrower

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

Description

This form states that in order to get the borrower to enter into certain promissory notes, the 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 Rhode Island Guaranty of Promissory Note by Individual — Corporate Borrower is a legal document that serves as an assurance or guarantee by an individual (the guarantor) to a lender, often a financial institution, that they will be personally responsible for the repayment of a promissory note in case the corporate borrower defaults on its loan obligations. This type of guaranty is commonly used when a corporate entity is seeking financing, and the lender requires additional security to mitigate the risk of lending solely to the corporation. The Guaranty of Promissory Note outlines the terms and conditions under which the guarantor agrees to guarantee the repayment of the loan. Key elements typically included in this document are: 1. Parties: The guaranty identifies the individual guarantor and the corporate borrower. It states their legal names, addresses, and other relevant information. 2. Promissory Note: The document references the promissory note to which the guaranty applies. It provides details such as the amount borrowed, interest rate, payment terms, and any other relevant provisions outlined in the promissory note. 3. Guarantor Liability: The guaranty clarifies that the guarantor is personally liable for the repayment of the loan in the event of default by the corporate borrower. It establishes the extent of the guarantor's obligation, which typically encompasses the full amount owed, plus interest and any associated costs or fees. 4. Waiver of Defenses: The guarantor generally waives any defenses they may have against payment or collection of the loan, such as lack of consideration, incapacity, or fraud. 5. Joint and Several liabilities: In some cases, the guaranty may stipulate that multiple guarantors, if applicable, are jointly and severally liable for the repayment of the loan. This means that each guarantor is individually responsible for the entire debt. 6. Jurisdiction and Attorney's Fees: The document specifies the governing law (often Rhode Island) and the jurisdiction in which any disputes will be resolved. It may also include a provision that allows the prevailing party in a legal dispute to recover their attorney's fees and costs from the other party. 7. Revocation or Termination: The guaranty might outline conditions under which the guarantor's obligation may be revoked or terminated, such as the full repayment of the loan or the lender's consent. Common variations of this Guaranty of Promissory Note include those tailored specifically for personal guarantees, unlimited guarantees, and conditional guarantees, depending on the specific circumstances and requirements of the lender and the borrower. It is important to note that this is a general overview of the Rhode Island Guaranty of Promissory Note by Individual — Corporate Borrower, and its actual specifics and requirements may vary. Consulting with a licensed attorney experienced in corporate law within Rhode Island is strongly advised to ensure compliance with state laws and to address any unique aspects of the transaction.

The Rhode Island Guaranty of Promissory Note by Individual — Corporate Borrower is a legal document that serves as an assurance or guarantee by an individual (the guarantor) to a lender, often a financial institution, that they will be personally responsible for the repayment of a promissory note in case the corporate borrower defaults on its loan obligations. This type of guaranty is commonly used when a corporate entity is seeking financing, and the lender requires additional security to mitigate the risk of lending solely to the corporation. The Guaranty of Promissory Note outlines the terms and conditions under which the guarantor agrees to guarantee the repayment of the loan. Key elements typically included in this document are: 1. Parties: The guaranty identifies the individual guarantor and the corporate borrower. It states their legal names, addresses, and other relevant information. 2. Promissory Note: The document references the promissory note to which the guaranty applies. It provides details such as the amount borrowed, interest rate, payment terms, and any other relevant provisions outlined in the promissory note. 3. Guarantor Liability: The guaranty clarifies that the guarantor is personally liable for the repayment of the loan in the event of default by the corporate borrower. It establishes the extent of the guarantor's obligation, which typically encompasses the full amount owed, plus interest and any associated costs or fees. 4. Waiver of Defenses: The guarantor generally waives any defenses they may have against payment or collection of the loan, such as lack of consideration, incapacity, or fraud. 5. Joint and Several liabilities: In some cases, the guaranty may stipulate that multiple guarantors, if applicable, are jointly and severally liable for the repayment of the loan. This means that each guarantor is individually responsible for the entire debt. 6. Jurisdiction and Attorney's Fees: The document specifies the governing law (often Rhode Island) and the jurisdiction in which any disputes will be resolved. It may also include a provision that allows the prevailing party in a legal dispute to recover their attorney's fees and costs from the other party. 7. Revocation or Termination: The guaranty might outline conditions under which the guarantor's obligation may be revoked or terminated, such as the full repayment of the loan or the lender's consent. Common variations of this Guaranty of Promissory Note include those tailored specifically for personal guarantees, unlimited guarantees, and conditional guarantees, depending on the specific circumstances and requirements of the lender and the borrower. It is important to note that this is a general overview of the Rhode Island Guaranty of Promissory Note by Individual — Corporate Borrower, and its actual specifics and requirements may vary. Consulting with a licensed attorney experienced in corporate law within Rhode Island is strongly advised to ensure compliance with state laws and to address any unique aspects of the transaction.