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The Guarantor Letter is a vital instrument in Philippine business and financial transactions, commonly used to secure loans, credit facilities, and other financial obligations. This document type is specifically regulated under the Civil Code of the Philippines, particularly Articles 2047-2084, which govern guaranty and suretyship. The letter serves as a risk mitigation tool for creditors by providing an additional layer of security through a third-party guarantee. It must clearly state the guaranteed amount, the terms of the guarantee, and the conditions under which it can be called upon. Guarantor Letters are particularly important in the Philippine context where personal and corporate guarantees are frequently required in business transactions, especially in banking relationships, property leases, and commercial contracts. The document needs to be carefully drafted to ensure enforceability under Philippine law and may require notarization depending on the nature and value of the guaranteed obligation.

1. Letter Header and Date: Full name and address of the creditor (recipient), reference numbers if applicable

2. Subject Line: Clear identification of the guarantee purpose and reference to the main obligation

3. Introduction: Identification of the guarantor and reference to the principal debtor

4. Principal Obligation Reference: Details of the main obligation being guaranteed (loan agreement, contract, etc.)

5. Guarantee Statement: Clear and unequivocal statement of the guarantee, including the scope and amount

6. Terms of Guarantee: Specific conditions under which the guarantee can be called upon

7. Duration: Period of validity of the guarantee

8. Payment Terms: How and when payment will be made if the guarantee is called

9. Signature Block: Guarantor's signature, name, title, and any required witness signatures