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Guaranty Agreement Template for Netherlands

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Key Requirements PROMPT example:

Guaranty Agreement

"I need a Dutch law Guaranty Agreement where our parent company provides a corporate guarantee for a €5 million equipment lease agreement that our subsidiary is entering into with ABC Leasing BV, effective from March 1, 2025."

Document background
The Guaranty Agreement is a fundamental legal instrument in Dutch commercial and financial transactions, used when additional security is required for financial obligations. This document type is particularly relevant when a creditor seeks additional assurance for the performance of a debtor's obligations. The agreement must comply with Dutch law requirements, specifically the provisions of the Dutch Civil Code (Burgerlijk Wetboek) regarding suretyship (borgtocht) and general contract law. The document includes essential elements such as the scope of guaranteed obligations, enforcement mechanisms, and termination provisions. Special considerations apply when the guarantor is a natural person, including mandatory form requirements and spousal consent where applicable. The Guaranty Agreement is commonly used in various contexts, including corporate finance, real estate transactions, and general commercial dealings, where it provides an important risk mitigation tool for creditors while establishing clear obligations for guarantors.
Suggested Sections

1. Parties: Identification of the Guarantor, the Beneficiary (creditor), and the Primary Debtor

2. Background: Context of the guarantee, reference to the primary obligation being guaranteed, and the relationship between parties

3. Definitions: Definitions of key terms used throughout the agreement, including 'Guaranteed Obligations', 'Guarantee Period', and other relevant terms

4. Guarantee: Core provision establishing the guarantee, its scope, and nature (conditional/unconditional, revocable/irrevocable)

5. Extent of Liability: Maximum amount of the guarantee and any limitations on the guarantor's liability

6. Payment Obligations: Terms governing when and how payments must be made under the guarantee, including payment mechanics

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

8. Continuing Security: Provisions establishing the guarantee as continuing security until discharged

9. Preservation of Rights: Beneficiary's rights preservation, including ability to pursue other remedies

10. Discharge and Release: Conditions for and process of discharging the guarantee

11. Notices: Communication requirements and contact details for formal notices

12. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction for disputes

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Multiple Guarantors: Required when there are multiple guarantors, specifying joint and several liability

2. Security: Include when the guarantee is supported by additional security or collateral

3. Assignment and Transfer: Include when rights under the guarantee may need to be transferred

4. Currency Provisions: Required for cross-border guarantees involving multiple currencies

5. Tax Gross-up: Include when tax implications need to be addressed explicitly

6. Financial Covenants: Include for commercial guarantees requiring ongoing financial conditions to be met

7. Costs and Expenses: Include when significant costs might be incurred in enforcing the guarantee

8. Amendments and Waivers: Include for complex commercial guarantees where flexibility might be needed

9. Spousal Consent: Required when guarantor is a natural person and married/in registered partnership

Suggested Schedules

1. Form of Demand: Template for making a demand under the guarantee

2. Guaranteed Obligations: Detailed description of the obligations being guaranteed

3. Security Documents: List and copies of any related security documents

4. Primary Agreement: Copy of the underlying agreement giving rise to the guaranteed obligations

5. Corporate Authorizations: Copies of relevant corporate approvals and authorizations

6. Spousal Consent Form: Standard form for obtaining spouse's consent when required

7. Contact Details: Detailed contact information for all parties and their representatives

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

Banking and Financial Services

Real Estate

Construction

Manufacturing

Retail

Technology

Professional Services

Energy

Healthcare

Transportation and Logistics

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Risk Management

Treasury

Commercial

Credit

Compliance

Corporate Secretariat

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Risk Manager

Credit Manager

Treasury Manager

Commercial Director

Business Development Manager

Contract Manager

Compliance Officer

Company Secretary

Managing Director

Financial Controller

Credit Risk Officer

Account Manager

Relationship 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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