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Loan Guarantee Agreement for Ireland

Loan Guarantee Agreement Template for Ireland

A Loan Guarantee Agreement under Irish law is a legally binding document where a guarantor commits to fulfilling the payment obligations of a borrower if they default on their loan commitments. The agreement is governed by Irish law and must comply with specific requirements including the Statute of Frauds (Ireland) 1695, which mandates that guarantees must be in writing. The document outlines the scope of the guarantee, the guarantor's obligations, enforcement mechanisms, and includes provisions for both primary and secondary obligations. It incorporates requirements from Irish financial services legislation and EU regulations where applicable.

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What is a Loan Guarantee Agreement?

The Loan Guarantee Agreement is a crucial financial security document used when a third party (guarantor) agrees to guarantee the repayment obligations of a borrower under a loan agreement. This document is particularly important in the Irish financial and business landscape, where it must comply with specific Irish legislative requirements, including the Statute of Frauds and financial services regulations. The agreement typically includes detailed provisions about the scope of the guarantee, enforcement mechanisms, representations and warranties, and release conditions. It's commonly used in corporate financing, property transactions, and business loans where additional security is required by the lender. The document must be carefully structured to ensure enforceability under Irish law and to protect the interests of all parties involved.

What sections should be included in a Loan Guarantee Agreement?

1. Parties: Identifies and defines the Lender, Principal Debtor (Borrower), and Guarantor(s)

2. Background: Recitals explaining the context of the loan agreement and the purpose of the guarantee

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Guarantee and Indemnity: Core section establishing the guarantee obligations and indemnification provisions

5. Scope of Guarantee: Defines the extent and limitations of the guaranteed obligations

6. Duration and Nature of Liability: Specifies the time period of the guarantee and nature of guarantor's liability

7. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial condition

8. Continuing Security: Establishes the guarantee as a continuing security until full discharge

9. Payments: Terms regarding payment obligations, timing, and method

10. Enforcement: Lender's rights and procedures for enforcing the guarantee

11. Discharge and Release: Conditions for and process of releasing the guarantor from obligations

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Confirms Irish law governance and jurisdiction for disputes

What sections are optional to include in a Loan Guarantee Agreement?

1. Multiple Guarantors: Required when there is more than one guarantor, establishing joint and several liability

2. Corporate Guarantor Provisions: Required for corporate guarantors, including corporate authority and benefit provisions

3. Security Provisions: Used when the guarantee is supported by specific security assets

4. Subordination: Required when the guarantor's claims need to be subordinated to the lender's

5. Currency Provisions: Needed when the guarantee involves multiple currencies

6. Assignment and Transfer: Required when the lender may want to transfer its rights under the guarantee

7. Data Protection: Required when personal data processing is involved, especially for individual guarantors

8. Financial Covenants: Optional provisions requiring guarantor to maintain certain financial conditions

What schedules should be included in a Loan Guarantee Agreement?

1. Schedule 1 - The Loan Agreement: Copy or details of the underlying loan agreement being guaranteed

2. Schedule 2 - Guaranteed Obligations: Detailed description of the obligations covered by the guarantee

3. Schedule 3 - Forms of Notice: Standard forms for various notices under the agreement

4. Schedule 4 - Security Assets: Details of any security provided in support of the guarantee

5. Schedule 5 - Corporate Authorizations: Copies of relevant corporate authorizations for corporate guarantors

6. Appendix A - Payment Procedures: Detailed payment mechanisms and bank account details

7. Appendix B - Compliance Certificate: Form of certificate for periodic confirmation of compliance with guarantee terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions








































Clauses






























Relevant Industries

Banking

Financial Services

Commercial Real Estate

Corporate Finance

Infrastructure

Manufacturing

Retail

Technology

Healthcare

Energy

Construction

Agriculture

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Credit

Corporate Secretariat

Commercial

Business Development

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Risk Manager

Credit Manager

Treasury Manager

Compliance Officer

Company Secretary

Commercial Director

Banking Relationship Manager

Loan Officer

Corporate Finance Manager

Financial Controller

Business Development Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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