Document background
The Loan Guarantor Agreement is a crucial document in secured lending transactions under Dutch law, providing additional security to lenders by involving a third party who guarantees the repayment of a loan. This agreement is commonly used in various business contexts, from corporate financing to real estate transactions, where additional security is required beyond the primary borrower's commitments. The document typically includes detailed provisions about the scope of the guarantee, the guarantor's obligations, enforcement procedures, and any limitations on liability. It must comply with Dutch Civil Code requirements, particularly regarding form requirements and consumer protection provisions where applicable. The agreement becomes especially important in situations where the primary borrower's creditworthiness alone is insufficient to secure the loan, or when corporate structures require parent company guarantees for subsidiary borrowings.
