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.
A Wake North Carolina Continuing Guaranty of Business Indebtedness By Corporate Stockholders is a legally binding agreement that provides additional financial security to lenders or creditors when a corporation borrows money or incurs debts. This type of guaranty assures the lender that the corporate stockholders will guarantee the repayment of the business obligations if the corporation is unable to fulfill its financial responsibilities. Keywords: Wake North Carolina, Continuing Guaranty, Business Indebtedness, Corporate Stockholders, agreement, financial security, lenders, creditors, corporation, borrow money, debts, repayment, obligations. There are various types of Wake North Carolina Continuing Guaranty of Business Indebtedness By Corporate Stockholders, including: 1. Unlimited Guaranty: This type of guaranty provides lenders with an unlimited guarantee of the corporate stockholders' liability for the business debts. It means that the stockholders are personally responsible for the entire outstanding debt amount. 2. Limited Guaranty: Unlike an unlimited guaranty, a limited guaranty sets a specific limit to the liability of the corporate stockholders. The guaranty agreement will clearly state the maximum amount or percentage of the debt for which the stockholders are responsible. 3. Joint and Several guaranties: In a joint and several guaranties, each corporate stockholder individually guarantees the full amount of the business debts. If one stockholder is unable to fulfill their obligation, the remaining stockholders become personally liable for the entire debt. 4. Conditional Guaranty: This type of guaranty may include certain conditions or requirements that need to be met for the stockholders' guarantee to come into effect. For example, the guaranty may only be triggered if the corporation defaults on its loan payments. 5. Continuing Guaranty: A continuing guaranty remains in effect until the stated obligations are fulfilled or until the guarantor's liability is discharged. It covers both existing and future debts incurred by the corporation during the guarantor's involvement with the business. 6. Specific Purpose Guaranty: This type of guaranty applies to a particular business transaction or loan. It may be limited to a specific project or financial arrangement, protecting the lender only in that specific context. In summary, a Wake North Carolina Continuing Guaranty of Business Indebtedness By Corporate Stockholders is an agreement that ensures lenders have additional financial security by holding corporate stockholders personally responsible for the repayment of a corporation's debts. It comes in different forms, including unlimited, limited, joint and several, conditional, continuing, and specific purpose guaranties.A Wake North Carolina Continuing Guaranty of Business Indebtedness By Corporate Stockholders is a legally binding agreement that provides additional financial security to lenders or creditors when a corporation borrows money or incurs debts. This type of guaranty assures the lender that the corporate stockholders will guarantee the repayment of the business obligations if the corporation is unable to fulfill its financial responsibilities. Keywords: Wake North Carolina, Continuing Guaranty, Business Indebtedness, Corporate Stockholders, agreement, financial security, lenders, creditors, corporation, borrow money, debts, repayment, obligations. There are various types of Wake North Carolina Continuing Guaranty of Business Indebtedness By Corporate Stockholders, including: 1. Unlimited Guaranty: This type of guaranty provides lenders with an unlimited guarantee of the corporate stockholders' liability for the business debts. It means that the stockholders are personally responsible for the entire outstanding debt amount. 2. Limited Guaranty: Unlike an unlimited guaranty, a limited guaranty sets a specific limit to the liability of the corporate stockholders. The guaranty agreement will clearly state the maximum amount or percentage of the debt for which the stockholders are responsible. 3. Joint and Several guaranties: In a joint and several guaranties, each corporate stockholder individually guarantees the full amount of the business debts. If one stockholder is unable to fulfill their obligation, the remaining stockholders become personally liable for the entire debt. 4. Conditional Guaranty: This type of guaranty may include certain conditions or requirements that need to be met for the stockholders' guarantee to come into effect. For example, the guaranty may only be triggered if the corporation defaults on its loan payments. 5. Continuing Guaranty: A continuing guaranty remains in effect until the stated obligations are fulfilled or until the guarantor's liability is discharged. It covers both existing and future debts incurred by the corporation during the guarantor's involvement with the business. 6. Specific Purpose Guaranty: This type of guaranty applies to a particular business transaction or loan. It may be limited to a specific project or financial arrangement, protecting the lender only in that specific context. In summary, a Wake North Carolina Continuing Guaranty of Business Indebtedness By Corporate Stockholders is an agreement that ensures lenders have additional financial security by holding corporate stockholders personally responsible for the repayment of a corporation's debts. It comes in different forms, including unlimited, limited, joint and several, conditional, continuing, and specific purpose guaranties.
