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The Personal Guaranty Agreement is widely used in U.S. business and lending transactions where additional security is required for financial obligations. It serves as a risk mitigation tool for creditors by providing an additional party who is legally bound to fulfill the principal debtor's obligations in case of default. This document is particularly common in small business lending where business owners personally guarantee corporate obligations, real estate transactions, and various commercial financing arrangements. The Personal Guaranty Agreement must comply with both federal and state-specific requirements, including the Statute of Frauds, Equal Credit Opportunity Act, and relevant consumer protection laws. It typically includes detailed provisions about the scope of the guarantee, enforcement mechanisms, and the rights and obligations of all parties involved.

1. Parties: Identifies the Guarantor, the Creditor, and the Principal Debtor (the party whose obligations are being guaranteed)

2. Background: Explains the context of the guaranty, including the underlying debt or obligation being guaranteed

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations,' 'Event of Default,' and other relevant terms

4. Guarantee: The core provision where the guarantor agrees to guarantee the obligations of the principal debtor

5. Nature of Guarantee: Specifies whether the guarantee is absolute, unconditional, irrevocable, and/or continuing

6. Guarantor's Representations and Warranties: Statements by the guarantor about their legal capacity, financial condition, and authority to enter into the agreement

7. Payment Terms: Specifies how and when the guarantor must make payments upon default by the principal debtor

8. Events of Default: Defines circumstances that trigger the guarantor's obligation to pay

9. Rights and Remedies of Creditor: Details the creditor's rights in enforcing the guarantee and collecting payment

10. Waivers: Lists rights and defenses that the guarantor agrees to waive

11. Duration and Termination: Specifies how long the guarantee remains in effect and conditions for termination

12. Governing Law and Jurisdiction: Specifies which state's laws govern the agreement and where disputes will be resolved

13. Notices: Details how formal communications between parties should be made and delivered

14. Execution: Signature blocks and attestation requirements