Document background
The Loan Guarantor Agreement is a crucial document in Singapore's lending landscape, typically used when additional security is required for a loan facility. It creates a legally binding commitment from a third party to assume responsibility for a borrower's debt obligations in case of default. This agreement must comply with Singapore's strict regulatory framework, including the Civil Law Act and Banking Act requirements. It's particularly important in commercial lending, property financing, and business loans where the primary borrower's creditworthiness needs enhancement. The agreement details the scope of the guarantee, enforcement mechanisms, and the guarantor's obligations while incorporating specific provisions required under Singapore law.
