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The Guarantor in Loan Agreement is a crucial document in Philippine lending practices, typically used when additional security is required for a loan transaction. This document is essential when a lender requires extra assurance beyond the borrower's creditworthiness, often in cases of substantial loans, business expansion financing, or when the primary borrower has limited credit history. The agreement must comply with the Civil Code of the Philippines and banking regulations, requiring proper execution before a notary public. It outlines the guarantor's obligations, liability limits, enforcement procedures, and includes mandatory provisions such as spousal consent when conjugal property is involved. The document is particularly important in commercial lending, real estate transactions, and business loans where personal or corporate guarantees are common requirements for loan approval.

1. Parties: Identifies and defines the Lender, Borrower, and Guarantor with complete details including registration/ID numbers and addresses

2. Background: Explains the context of the primary loan agreement and the purpose of the guarantee

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Event of Default', and 'Enforcement Event'

4. Scope of Guarantee: Clearly defines the extent of the guarantor's liability and the specific obligations being guaranteed

5. Nature of Guarantee: Specifies whether the guarantee is continuing, irrevocable, and unconditional

6. Guarantor's Representations and Warranties: Statements confirming the guarantor's capacity, authority, and financial ability to provide the guarantee

7. Payment Obligations: Details of when and how the guarantor must make payments upon demand

8. Indemnity: Guarantor's obligation to indemnify the lender against losses related to the guarantee

9. Preservation of Rights: Lender's rights preservation and ability to pursue remedies against both borrower and guarantor

10. Duration and Release: Terms regarding how long the guarantee remains in effect and conditions for release

11. Notices: Procedures for serving notices and demands under the guarantee

12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and identifies courts with jurisdiction

13. Execution: Signature blocks and notarial requirements