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Guarantee And Indemnity Form Template for New Zealand

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Key Requirements PROMPT example:

Guarantee And Indemnity Form

"I need a Guarantee and Indemnity Form for a commercial property lease where three individual directors will jointly guarantee their company's lease obligations to the landlord, with a liability cap of NZD 500,000."

Document background
The Guarantee and Indemnity Form is a vital legal instrument used in New Zealand when one party (the guarantor) agrees to be responsible for another party's (the principal debtor) obligations to a third party (the creditor). This document is commonly used in various commercial contexts, including business loans, property leases, supply agreements, and corporate financing arrangements. It provides creditors with additional security by ensuring another party will fulfill the primary obligations if the principal debtor fails to do so. The document must comply with New Zealand legal requirements, particularly the Contract and Commercial Law Act 2017 and the Credit Contracts and Consumer Finance Act 2003 when applicable. It typically includes both guarantee provisions (promising to fulfill the principal debtor's obligations) and indemnity provisions (protecting the creditor against losses), making it a comprehensive security instrument.
Suggested Sections

1. Parties: Identifies all parties including the Guarantor(s), the Creditor, and the Principal Debtor

2. Background: Explains the context of the guarantee, including details of the principal debt or obligation being guaranteed

3. Definitions: Defines key terms used throughout the document

4. Guarantee: Sets out the primary guarantee obligations, including the scope and limit of the guarantee

5. Indemnity: Details the indemnity obligations of the guarantor

6. Nature of Guarantee: Specifies that the guarantee is continuing, unconditional and irrevocable

7. Guarantor's Obligations: Lists specific obligations and responsibilities of the guarantor

8. Creditor's Rights: Outlines the rights of the creditor, including enforcement rights

9. Payments: Specifies how and when payments must be made under the guarantee

10. Representations and Warranties: Contains guarantor's confirmations about their capacity and authority

11. Preservation of Rights: Ensures creditor's rights are preserved in various circumstances

12. Costs and Expenses: Addresses liability for costs related to the guarantee

13. Notices: Specifies how formal communications between parties should be made

14. Execution: Formal signing section with necessary attestation requirements

Optional Sections

1. Security: Include when the guarantee is secured against specific assets

2. Multiple Guarantors: Include when there is more than one guarantor, addressing joint and several liability

3. Limit of Liability: Include when the guarantee is capped at a specific amount

4. Independent Legal Advice: Include when requiring confirmation that the guarantor has received independent legal advice

5. Priority and Subordination: Include when there are multiple creditors or security interests

6. Assignment: Include when transfer rights need to be addressed specifically

7. Governing Law and Jurisdiction: Include when there are cross-border elements or specific jurisdiction requirements

8. Variation of Principal Agreement: Include when the underlying agreement may be varied without affecting the guarantee

Suggested Schedules

1. Schedule 1 - Guaranteed Obligations: Detailed description of the obligations being guaranteed

2. Schedule 2 - Principal Agreement Details: Details of the underlying agreement or facility being guaranteed

3. Schedule 3 - Security Details: Description of any security provided under the guarantee

4. Schedule 4 - Guarantor Information: Detailed information about the guarantor(s) including contact details

5. Appendix A - Independent Legal Advice Certificate: Certificate from lawyer confirming independent legal advice

6. Appendix B - Guarantor Acknowledgment: Formal acknowledgment of obligations and risks by guarantor

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































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Relevant Industries

Banking and Financial Services

Real Estate

Construction

Manufacturing

Retail

Professional Services

Information Technology

Hospitality

Agriculture

Education

Healthcare

Transportation and Logistics

Relevant Teams

Legal

Finance

Risk Management

Credit Control

Compliance

Treasury

Commercial

Corporate Secretariat

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Finance Manager

Credit Controller

Risk Manager

Legal Counsel

Commercial Manager

Contract Administrator

Company Secretary

Credit Analyst

Account Manager

Business Development Manager

Treasury Manager

Compliance Officer

Financial Controller

Corporate Lawyer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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