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The Loan Personal Guarantee Form is a critical document in Philippine lending practices, commonly used when a lender requires additional security beyond the borrower's own creditworthiness. This document becomes necessary when a borrower's financial standing or collateral alone is insufficient to secure a loan, requiring a third party (the guarantor) to personally guarantee the loan repayment. The form must comply with Philippine banking regulations, the Civil Code's provisions on guarantees, and the Truth in Lending Act. It is particularly important in commercial lending, where personal guarantees from company directors or shareholders are often required for corporate loans. The document typically includes detailed provisions about the guarantee's scope, enforcement mechanisms, and the guarantor's obligations, while incorporating specific Philippine legal requirements such as spousal consent where applicable.

1. Parties: Identifies the Guarantor, the Lender (Creditor), and references the Borrower

2. Background: Explains the context of the guarantee, including reference to the main loan agreement and the relationship between the Guarantor and the Borrower

3. Definitions: Defines key terms used throughout the guarantee agreement

4. Guarantee and Indemnity: Core section detailing the scope of the guarantee, the guaranteed obligations, and indemnification provisions

5. Nature of Guarantee: Specifies that this is a continuing guarantee and defines its characteristics (e.g., unconditional, irrevocable)

6. Guarantor's Representations and Warranties: Statements by the guarantor about their capacity, authority, and financial condition

7. Payment Obligations: Details how and when payments must be made by the guarantor upon demand

8. Preservation of Rights: Establishes that the lender's rights against the guarantor are preserved despite various circumstances

9. Enforcement: Specifies when and how the guarantee can be enforced

10. Governing Law and Jurisdiction: Confirms Philippine law as governing law and specifies jurisdiction for disputes