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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."
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
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
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
Real Estate
Commercial Property
Residential Property
Retail
Industrial
Hospitality
Office Space
Manufacturing
Warehousing
Banking and Finance
Legal
Real Estate
Property Management
Facilities Management
Risk and Compliance
Finance
Commercial Operations
Asset Management
Lease Administration
Contract Management
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
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