Document background
The Personal Guarantee Letter is a crucial document in Malaysian business and financial transactions, commonly used when entities or individuals seek credit facilities, loans, or other financial accommodations. It serves as additional security for creditors by providing recourse to a guarantor's personal assets if the primary debtor defaults. This document must comply with Malaysian legal requirements, including the Contracts Act 1950, Stamp Act 1949, and relevant banking regulations. The guarantee can be limited or unlimited in amount and may be supported by specific asset pledges. It's particularly important in situations where the primary borrower's creditworthiness needs to be supplemented, such as in business loans, property purchases, or corporate financing arrangements. The document typically includes clear identification of parties, specific obligations being guaranteed, enforcement mechanisms, and necessary representations and warranties.
