A guarantor of a debt may need to sign and execute Guaranty without Pledged Collateral Form to provide security for the repayment of a loan. However, this form does not require pledging personal property or asset as a security.
The Promisee or the lender of the loan requires such guarantee as a security in case of default in payment by the original borrower. This signed document is legally binding on the signee. The guarantor signing the form undertakes the responsibility of the loan payment when demanded by the lender. Please review this document carefully before signing it. You as a guarantor must hand over the original signed copy of the document to the lender whilst retain a copy for record purpose. You as a guarantor signing this Guaranty without Pledged Collateral Form undertake to repay the sum due and payable at the time of demanding the same including the principal amount, accumulated interest, and other expenses incurred during the recovery of the debt. Please specify the State for governing state laws and jurisdiction.
Things to Remember
- Please understand the nature of commitment you make before signing this Guaranty without Pledged Collateral Form.
- You must not stand guarantee to a loan borrowed by a person unknown to you under any forcible circumstances or influence by any party involved in the borrowing and/or lending transaction.
- This document permits lender as well as his/her administrators, executors, legatees, and personal or legal representatives to claim the debt from the guarantor.
- Guaranty without Pledged Collateral Form is unconditional guarantee and thus it permits the lender to recover the debt even by filing a lawsuit against the guarantor.
- This document is tangible in nature and it is irrevocable. In addition, the guarantor is liable to pay costs and expenses incurred by the Promisee during recovery of the debt.
- Please understand that the Promisee is in a position to proceed against one or all guarantors without any notice to recover the debt.
How to Prepare Guaranty without Pledged Collateral Form
- Please insert the date of entering into an agreement / signing this Guaranty without Pledged Collateral Form on the foremost line of the document.
- Then enter the legal name of the guarantor on the next line.
- Continue by entering the legal name of the guarantor again on the following line.
- Enter the name of the State for defining the scope of the applicable state laws and jurisdiction.
- Enter the date and sign on the line next to the line reserved for the date. Additionally, you may choose to enter your printed name, address, phone number, and email address in case the Promisee demands the same.
You need not notarize your signature and/or identity.