Guaranty Agreements
When originating a loan to a corporation, many lenders require the borrower to execute a personal guaranty in addition to the promissory note and other loan documents. The effect of the personal guaranty is that the borrower agrees to be personally liable on the debt so that if an issue arises as to repayment of the debt, the borrower, in addition to the name corporation, which be responsible in an individual capacity to repay the debt.
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