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The Guarantor Contract is a crucial legal instrument in New Zealand's commercial and financial landscape, designed to provide security for creditors while ensuring appropriate protections for guarantors. This document is typically used when a creditor requires additional security beyond the principal debtor's covenant, such as in business loans, property leases, or commercial contracts. The contract must comply with New Zealand legislation, particularly the Credit Contracts and Consumer Finance Act 2003 and the Contract and Commercial Law Act 2017, which set out specific requirements for guarantee arrangements. It includes comprehensive details about the guaranteed obligations, limits of liability, enforcement mechanisms, and mandatory disclosure requirements. The document is structured to protect all parties' interests while ensuring transparency and fairness in the guarantee arrangement.

1. Parties: Identifies the guarantor(s), the creditor, and the principal debtor

2. Background: Sets out the context of the guarantee, including reference to the principal debt and the reason for the guarantee

3. Definitions: Defines key terms used throughout the agreement

4. Guarantee and Indemnity: Core section detailing the guarantee obligations and indemnity provisions

5. Extent of Guarantee: Specifies the scope and limitations of the guarantee, including maximum liability if applicable

6. Guarantor's Obligations: Details specific obligations of the guarantor, including payment obligations and ongoing commitments

7. Creditor's Rights: Outlines the rights of the creditor, including enforcement rights

8. Duration and Discharge: Specifies when and how the guarantee can be terminated or discharged

9. Representations and Warranties: Guarantor's confirmations about their capacity and understanding of the obligations

10. Costs and Indemnities: Addresses payment of costs and additional indemnities

11. Notices: Specifies how formal communications between parties should be made

12. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and assignment

13. Execution: Formal signing section including any witness requirements