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The Personal Guarantee Promissory Note is a crucial financial instrument in Pakistani banking and commercial practice, commonly used when a lender requires additional security beyond the primary debtor's promise to pay. This document is particularly valuable in situations where the creditworthiness of the primary debtor needs to be supplemented by a personal guarantor's commitment. The document must comply with Pakistani legislation, particularly the Negotiable Instruments Act 1881 and Contract Act 1872, and includes specific details about the debt amount, payment terms, interest rates, and the scope of the guarantee. It's frequently used in business loans, personal lending, and commercial transactions where the lender seeks enhanced security through personal guarantee backing.

1. Parties: Identification of the Maker (Primary Debtor), the Payee (Creditor), and the Guarantor

2. Background: Brief context of the underlying debt obligation and the purpose of the guarantee

3. Definitions: Key terms used in the document including 'Principal Sum', 'Interest Rate', 'Due Date', and 'Event of Default'

4. Promise to Pay: Unconditional promise by the Maker to pay the specified sum with details of amount, interest rate, and payment terms

5. Guarantee Provisions: Personal guarantee clause where the Guarantor unconditionally guarantees the payment obligations of the Maker

6. Payment Terms: Detailed payment schedule, interest calculations, and method of payment

7. Events of Default: Circumstances that constitute default and trigger immediate payment obligation

8. Rights and Remedies: Rights of the Payee upon default, including enforcement against both Maker and Guarantor

9. Representations and Warranties: Statements by both Maker and Guarantor regarding their capacity and authority to enter into the agreement

10. Governing Law: Specification of Pakistani law as governing law and jurisdiction clause