Document background
The Guarantor Agreement For Loan is essential in Swiss lending transactions where additional security is required for a loan facility. This document is commonly used when a lender requires extra assurance beyond the borrower's own creditworthiness, typically in situations involving corporate groups, family businesses, or significant commercial loans. Under Swiss law, particularly the Swiss Code of Obligations (Articles 492-512), such guarantees must meet strict formal requirements, including written form and maximum liability specification. The agreement outlines the guarantor's obligations, enforcement mechanisms, and protective provisions for all parties. It's particularly relevant in scenarios where parent companies guarantee subsidiaries' loans, shareholders support their companies' borrowing, or individuals secure business loans for family members or related entities.
