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Free guarantor & security agreement

The document for whoever stands behind the loan when the borrower cannot pay. It names the debt being secured, records who is bound and on what terms, sets out what they are warranting, and leaves room for the schedule, the signatures and the witnesses that make it hold.

Preview

Every ruled line and tick box is for the parties to complete by hand. Nothing is filled in, and the limit of liability is deliberately blank — read that clause before you leave it that way.

Guarantee and Security Agreement

Deed of suretyship — individual guarantor
1The obligation being secured
Borrower — full name / registered name
Loan or account reference
Date of loan agreement
Loan product
Principal amount
Interest rate
Term
Instalment
First instalment due
2The lender and the guarantor
Lender — full name
Lender — address
Full name
Identification type
National IDPassportDriver’s licenceOther
Identification number
Date of birth
Occupation
Residential address
Phone
Email
Relationship to the borrower
Monthly income
3Definitions and interpretation

In this document the “Loan Agreement” means the loan agreement identified in section 1 between the Lender and the Borrower, including every extension, renewal, restructuring, refinancing or variation of it. The “Secured Obligations” means every amount the Borrower owes or comes to owe the Lender under that agreement, whether present or future, together with interest, fees, penalties and the costs of enforcement and recovery.

Words in the singular include the plural. A reference to a person includes a natural person, a company, a partnership, a cooperative, a savings and credit society and an unincorporated association. Headings are for convenience and do not affect interpretation.

4The guarantee

The Guarantor binds themselves to the Lender as surety for and co-principal debtor with the Borrower for the due and punctual payment of the Secured Obligations.

This is a continuing covering guarantee. It secures the whole of the Borrower’s indebtedness as it stands from time to time, and it is not discharged by the Loan being repaid in part, by the account fluctuating, or by any intervening settlement.

The Guarantor renounces the benefits of excussion and of division, and confirms that the meaning and effect of that renunciation have been explained. The Lender may accordingly claim the full amount from the Guarantor without first proceeding against the Borrower, against any security, or against any other guarantor.

5Nature of the liability

The liability under this document is continuing, and is not affected by any change in the constitution, name, ownership or management of the Borrower or of the Lender, nor by the death, insolvency or incapacity of any other guarantor.

The Lender is not obliged to enforce any other security, to call up any other guarantee, or to take any step whatsoever against the Borrower before claiming under this document.

6Limit of liability

The liability under this document is limited to the amount stated below, together with interest on that amount and the costs of recovering it. If no amount is stated, this guarantee is unlimited and covers the whole of the Secured Obligations however large they become.

Limit of liability — amount
Amount in words
7Warranties given to the lender

The person or persons signing this document warrant to the Lender that:

(a)they have read the Loan Agreement, or have had it read and explained to them, and understand what the Borrower has undertaken to do;
(b)they sign freely, not on the instruction of the Borrower, and not in reliance on anything said outside this document;
(c)every fact given to the Lender, including the particulars in sections 1 and 2 of this document, is true and complete;
(d)they have the legal capacity to give this undertaking, and giving it breaches no other agreement binding on them;
(e)they are not under any insolvency, business rescue, administration or debt review proceeding, and know of none that is threatened;
(f)they have disclosed every other guarantee, suretyship or security already given, whether to this Lender or to anyone else, as set out in the Schedule;
(g)they are able to meet this obligation from their own resources, without relying on the Borrower repaying the Loan.
8Rights reserved to the lender

The Lender may, without releasing anyone bound by this document and without reducing their liability, grant the Borrower time or any other indulgence, vary the interest rate, the term or the instalment, restructure or refinance the Loan, take further security or release existing security, fail to perfect any security, and release or compromise with any other guarantor.

Any waiver by the Lender must be in writing to bind it. A delay in enforcing a right is not a waiver of that right.

9Demand and enforcement

On an event of default under the Loan Agreement, the Lender may demand payment of the whole of the Secured Obligations then outstanding. The demand is payable on presentation and is not conditional on the Lender having first proceeded against the Borrower.

A certificate signed by an authorised officer of the Lender stating the amount outstanding is sufficient proof of that amount for the purpose of obtaining judgment, unless the contrary is proved.

10Address for notices

A demand or notice under this document is validly given if delivered by hand, sent by post, or sent to the email address or number given below, and takes effect on delivery or, if sent electronically, on the day it is sent.

Any change of address, email address or number must be given to the Lender in writing within seven days of the change.

Address for notices
Email for notices
Phone for notices
11Costs of recovery

The person or persons bound by this document are liable for the Lender’s reasonable costs of enforcing it, including legal costs on the scale between attorney and client where the law of the jurisdiction allows it, tracing costs and collection commission.

12Duration and release

This document remains in force until the Lender confirms in writing that the Secured Obligations have been discharged in full.

Withdrawal in respect of future advances is possible only by written notice to the Lender, and takes effect when that notice is received. Withdrawal does not affect liability for anything already owed at that moment, nor for anything advanced under a commitment the Lender had already made.

13Governing law and jurisdiction

This document is governed by the law of the jurisdiction stated below, and the parties submit to the exclusive jurisdiction of its courts. If any provision is held unenforceable, the remaining provisions continue in full force.

Governing law — country or state
Signed at
14Schedule — guarantees already given

Every guarantee, suretyship or security the Guarantor has already given, whether to this Lender or to anyone else. Write “none” if there are none — a blank row is not the same answer.

Lender or institutionBorrower guaranteedAmount guaranteedDate given
15Signature and attestation

Signed by the person or persons named above, who confirm that they have read this document in full, or have had it read and explained to them in a language they understand, and that its effect was explained to them before they signed.

The renunciation of the benefits of excussion and of division was separately explained, and its consequence — that the Lender may claim the full amount without first proceeding against the Borrower — was understood.

________________
Guarantor signature
Date: ____________
________________
For and on behalf of the lender
Date: ____________
________________
Witness 1
Date: ____________
________________
Witness 2
Date: ____________

Where the law of the jurisdiction requires this document to be attested, commissioned or notarised, the officer taking it completes the block below.

Commissioner or notary — name
Capacity and registration number
Place
Date
For office use only
File reference
Date received
Captured by
Security register reference
Next review date

How to use this document

  1. 1Fill in the debt before you fill in the guarantorSection 1 names the loan being secured — the reference, the amount, the rate and the term. A guarantee that does not identify what it secures is the commonest reason one turns out to be worth nothing, so complete it from the signed loan agreement rather than from memory.
  2. 2Let the guarantor read it, and say soThe warranties clause and the execution clause both turn on the guarantor having actually read the document, or having had it read and explained in a language they understand. If you explain it across a counter, do that before anyone signs, not after.
  3. 3Complete the schedule and witness the signaturesThe schedule is not an appendix you can leave blank — it carries the pledged assets, the members bound, or the guarantees already given. Write "none" where there are none. Then have both witnesses sign, and commission the document if your jurisdiction requires it.

What the document sets out

  • The obligation being secured — borrower, loan reference, principal, rate, term and instalment
  • Full particulars of the lender and of whoever is being bound, with identification and address
  • Definitions that tie the document to the loan agreement, including future extensions and restructures
  • The operative clause: a suretyship, a company guarantee, a pledge of assets or a group cross-guarantee
  • Continuing liability, joint and several where more than one person signs
  • A limit of liability on the guarantee versions, with a printed warning about what leaving it blank means
  • Warranties covering capacity, disclosure, insolvency and guarantees already given
  • The lender's reserved rights — indulgence, variation, restructuring and release of other sureties
  • Custody, insurance and inspection terms where assets are pledged
  • Demand, enforcement and a certificate-of-balance clause
  • Costs, duration and withdrawal, governing law and jurisdiction
  • A schedule, two signature blocks, two witnesses and a commissioner's attestation panel

Where does the security live afterwards?

A signed guarantee filed in a cabinet is a guarantee nobody remembers at the moment it matters. Lendbox records guarantors against the loans they guarantee and keeps every pledged asset on the client record, so before you accept the same trader as guarantor for a fifth loan you can see the four already standing.

See collateral & guarantor management

Questions lenders ask

What is a guarantor form?
It is the document by which somebody other than the borrower takes on responsibility for the loan. It identifies the debt being secured, binds the guarantor to pay it if the borrower does not, and records what the guarantor has warranted to the lender. Without one, a verbal promise to stand behind a loan is in most jurisdictions unenforceable.
What is the difference between a guarantee and a pledge?
A guarantee binds a person: if the borrower does not pay, the guarantor does, from whatever they own. A pledge binds a thing: specific assets are put up as security, and the lender's remedy is to realise those assets rather than to sue their owner personally. This template covers both, because lenders routinely take one, the other, or both at once.
What does "surety and co-principal debtor" mean?
A plain surety can insist the lender exhaust the borrower first. A co-principal debtor cannot — the lender may claim the whole amount from them straight away, in any order it chooses. The renunciations in the operative clause are what produce that effect, and they are exactly the part a guarantor must have explained to them before signing.
Should the limit of liability be left blank?
Only deliberately. The limit clause states in the document itself that an unstated limit means the guarantee is unlimited and covers the whole debt however large it becomes. That is often what a lender wants and rarely what a guarantor expects, so it is printed on the page rather than left as a trap. The pledge version has no such clause: what limits a pledgor's exposure is the schedule of assets.
Do we need witnesses, or a commissioner of oaths?
It depends entirely on the jurisdiction, and in some places on whether the guarantor is an individual. The template provides two witness blocks and an attestation panel so the document is complete wherever they are required, and harmless where they are not. Check your local requirements before you rely on it.
Can we use this for a group lending scheme?
Yes — that is what the group cross-guarantee version is for. Every member binds themselves jointly and severally for the whole amount advanced to the group, and the schedule lists the members with a signature column beside each name. A member whose row is unsigned is not bound, which is why the column is there.

This template is provided for general information and is not legal advice. Guarantees and security are among the most jurisdiction-specific documents in lending: formalities, renunciations, consumer-protection rules, spousal consent, registration of security over movables and the enforceability of a certificate of balance all vary from country to country, and some of them will make a clause here invalid where you are. Have it reviewed by a lawyer qualified in your jurisdiction before you ask anyone to sign it.

Know who is standing behind what

Lendbox records every guarantor against the loan they guarantee and every pledged asset against the client, and shows one person's total exposure across your whole book — so the fifth guarantee is a decision, not a surprise.

No card required