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Lease Contract Guaranty Template for Malaysia

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Key Requirements PROMPT example:

Lease Contract Guaranty

"I need a Lease Contract Guaranty where ABC Holdings Sdn Bhd will act as corporate guarantor for its subsidiary's lease of a manufacturing facility in Penang, with the guarantee period starting from March 1, 2025, and covering a 5-year lease term with a maximum liability cap of RM 2 million."

Document background
The Lease Contract Guaranty is an essential document in Malaysian property leasing transactions where additional security is required beyond the tenant's own covenant. It is commonly used in situations where a tenant's financial standing or credit history necessitates additional assurance for the landlord, or in commercial leases where parent companies guarantee their subsidiaries' lease obligations. The document must comply with Malaysian law, particularly the Contracts Act 1950, National Land Code 1965, and Stamp Act 1949. It outlines the guarantor's obligations, the extent of the guarantee, enforcement mechanisms, and the conditions under which the guarantee remains valid. This type of guarantee is particularly important in high-value commercial leases or when dealing with new or unestablished tenants.
Suggested Sections

1. Parties: Identification of the Landlord, Tenant, and Guarantor(s) with full legal names and addresses

2. Background: Context of the guarantee, reference to the main lease agreement, and purpose of the guarantee

3. Definitions: Key terms used in the guarantee agreement including 'Lease', 'Guaranteed Obligations', 'Property', etc.

4. Guarantee and Indemnity: Core guarantee provisions, scope of guaranteed obligations, and indemnification terms

5. Guarantor's Obligations: Detailed description of what the guarantor is responsible for, including payment obligations and performance guarantees

6. Duration of Guarantee: Term of the guarantee, including whether it extends beyond the initial lease term

7. Landlord's Rights and Remedies: Actions the landlord can take to enforce the guarantee, including right to claim directly from guarantor

8. Preservation of Guarantee: Circumstances under which the guarantee remains valid despite changes to the lease or tenant's status

9. Representations and Warranties: Guarantor's confirmations about their capacity and authority to provide the guarantee

10. Notices: How and where formal communications between parties should be sent

11. Governing Law and Jurisdiction: Confirmation that Malaysian law applies and jurisdiction for dispute resolution

Optional Sections

1. Joint and Several Liability: Required when there are multiple guarantors to specify their joint and several obligations

2. Corporate Authority: Required for corporate guarantors to confirm corporate authority and execution requirements

3. Maximum Liability Cap: Optional limitation on the guarantor's maximum financial exposure

4. Step-in Rights: Optional rights for guarantor to take over lease if tenant defaults

5. Alternative Dispute Resolution: Optional provisions for mediation or arbitration before court proceedings

6. Assignment and Transfer: Required when guarantee needs to be assignable to new landlords or property owners

Suggested Schedules

1. Schedule 1 - Main Lease Agreement: Copy or key terms of the underlying lease agreement being guaranteed

2. Schedule 2 - Property Details: Description and details of the leased property

3. Schedule 3 - Guaranteed Obligations: Detailed list of specific obligations being guaranteed

4. Schedule 4 - Corporate Authorization: For corporate guarantors, relevant board resolutions and authorizations

5. Schedule 5 - Guarantor's Assets Declaration: Optional schedule listing guarantor's assets or financial status

Authors

Alex Denne

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

Relevant legal definitions






























Clauses



























Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail

Industrial

Hospitality

Office Space

Manufacturing

Warehousing

Banking and Finance

Relevant Teams

Legal

Real Estate

Property Management

Facilities Management

Risk and Compliance

Finance

Commercial Operations

Asset Management

Lease Administration

Contract Management

Relevant Roles

Legal Counsel

Property Manager

Real Estate Manager

Leasing Manager

Asset Manager

Facilities Manager

Contract Administrator

Risk Manager

Company Secretary

Commercial Director

Chief Financial Officer

Property Lawyer

Tenant Relations Manager

Portfolio Manager

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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