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Guarantor Declaration for Philippines

Guarantor Declaration Template for Philippines

A formal legal document governed by Philippine law wherein a party (the guarantor) makes a binding declaration to assume responsibility for the debts, obligations, or performance of another party (the principal debtor) if the latter fails to fulfill their obligations to a third party (the creditor). The document is structured in accordance with the Philippine Civil Code provisions on Guaranty and Suretyship (Articles 2047-2084) and must be properly executed with clear terms regarding the scope of guaranteed obligations, duration, and enforcement mechanisms. It requires proper notarization and may need additional formalities such as spousal consent or corporate authorizations depending on the guarantor's status.

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What is a Guarantor Declaration?

The Guarantor Declaration is a crucial legal instrument in Philippine business and financial transactions, providing additional security to creditors by having a third party guarantee the obligations of a principal debtor. This document is commonly used in various scenarios including loan agreements, lease contracts, and commercial transactions where additional security is required. The declaration must comply with Philippine Civil Code requirements and clearly outline the scope of the guarantee, the obligations being guaranteed, and the conditions under which the guarantee can be enforced. Depending on whether the guarantor is an individual or corporation, additional requirements such as spousal consent or board resolutions may be necessary. The document serves as a risk mitigation tool for creditors while creating legally binding obligations for guarantors under Philippine law.

What sections should be included in a Guarantor Declaration?

1. Guarantor Details: Full legal name, address, and identification details of the guarantor

2. Principal Debtor Details: Identity and details of the person/entity whose obligations are being guaranteed

3. Creditor Details: Identity and details of the beneficiary of the guarantee

4. Guaranteed Obligations: Clear description of the debts, obligations, or liabilities being guaranteed

5. Guarantee Declaration: Formal statement of guarantee including the scope and nature of the guarantee

6. Duration of Guarantee: Term of the guarantee and any conditions for termination

7. Guarantor's Representations: Declarations regarding the guarantor's capacity and authority to provide the guarantee

8. Enforcement Rights: Rights of the creditor to enforce the guarantee

9. Governing Law: Confirmation that the declaration is governed by Philippine law

What sections are optional to include in a Guarantor Declaration?

1. Corporate Authority: Required for corporate guarantors - includes board resolutions and corporate approvals

2. Security Provisions: Required when the guarantee is secured by specific assets or collateral

3. Multiple Guarantors: Required when there are multiple guarantors, defining joint and several liability

4. Spousal Consent: Required when the guarantor is married and conjugal property may be affected

5. Financial Covenants: Optional section for maintaining certain financial conditions during the guarantee period

6. Independent Legal Advice: Confirmation that the guarantor has received independent legal advice

What schedules should be included in a Guarantor Declaration?

1. Schedule A - Guaranteed Obligations: Detailed list of specific obligations, amounts, and terms being guaranteed

2. Schedule B - Security Details: Description of any security or collateral provided (if applicable)

3. Schedule C - Principal Agreement: Copy or details of the main agreement that is being guaranteed

4. Appendix 1 - Corporate Documents: Corporate authorizations and resolutions (for corporate guarantors)

5. Appendix 2 - Identity Documents: Copies of required identification documents of the guarantor

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Declaration Form

Cost

Free to use
Relevant legal definitions























Clauses

























Relevant Industries

Banking and Financial Services

Real Estate

Construction

Manufacturing

Retail

Transportation

Energy

Agriculture

Technology

Healthcare

Education

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit Administration

Corporate Secretariat

Treasury

Business Development

Operations

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Director

Credit Risk Manager

Legal Counsel

Corporate Secretary

Compliance Officer

Banking Officer

Loan Officer

Credit Analyst

Contract Manager

Risk Management Officer

Treasury Manager

Business Development Manager

Account Manager

Corporate Lawyer

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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