A guarantor who offers unconditional and absolute guarantee to the repayment of debt signs Guaranty with Pledged Collateral Form. This form is legally binding on all parties involved in the borrowing transaction. This collateral guarantee form also is a part of the original agreement between the borrower and the lender.
The guarantor promises to pledge a security in terms of the personal property, other tangible asset, stocks or bonds, real estate, or other liquid financial instruments and the same are described in this pledged guarantee form. The guarantor’s obligation towards the repayment is primary and direct. Please mention the State’s name to define the jurisdiction and applicable laws. Notarization of this document is not necessary. However, the Promisee or the lender may insist for the same. Please retain a copy of this signed document for record purpose before handing over the original signed document to the lender.
You Must Know Before Proceeding
- You as a guarantor, guarantee the repayment of the debt.
- You pledge personal property, other tangible asset, stocks or bonds, real estate, or other liquid financial instruments you own towards the security.
- The Lender or the Promisee is in a position to liquidate the described security towards the recovery of the debt.
- You must sign this Guaranty with Pledged Collateral Form only for a borrower well known to you.
- Please describe personal property, other tangible asset, stocks or bonds, real estate, or other liquid financial instruments carefully in this form to avoid ambiguity.
- This form expresses unconditional and absolute guarantee of the repayment to the Promisee, his/her administrators and executors, or personal or legal representatives, or estate legatees as applicable.
- The guarantor guarantees to pay the sums due and payable at the time of the demand of the lender. This agreement provides the unconditional guarantee to repayment backed by pledging personal property, other tangible asset, stocks or bonds, real estate, or other liquid financial instruments.
Steps to Prepare Guaranty with Pledged Collateral Form
- Enter the date of entering into an agreement with the Promisee. Please enter the date in the required format.
- Enter the legal name of the guarantor on the next line. Then enter the name of the guarantor again on the next line.
- Enter details of the security pledged on the subsequent line. Please provide a detailed description of the security on these lines.
- Enter the name of the State on the following line. Entering the name of the State defines the applicable laws for obligations, rights, and liabilities arising due to failure in making timely repayment of the debt.
Please enter the date and sign in the space provided for the guarantor’s signature to complete preparation of the Guaranty with Pledged Collateral Form.