Guarantor Contribution Agreement
Answer some easy questions to make your document in as little as 5 minutes. Download it instantly when you’re done.
Make sure anyone giving a personal guarantee doesn’t have to pay more than their fair share.
You’d think that when several people guarantee a bank loan, lease, or some other obligation the creditor would have to collect the fair share from each person if the company doesn’t pay the obligation. But that’s not how it works.
Even when a few people give a guarantee together, a creditor doesn't have to pick on them all equally.
Shareholders and others connected to the business often need to promise banks, landlords, and other creditors that if the company doesn’t pay the obligation, they will. That’s called a guarantee and the people giving the guarantee are called guarantors.
The guarantee the creditor asks for is almost always “joint and several“. That means the creditor has the option to go after all the guarantors if it wants (joint) or one or more of them individually (several) for the whole amount. So, the creditor doesn’t have to treat the guarantors equally at all. It’s a way creditors protect themselves – they want to be able to go after whoever has the money.
A Guarantor Contribution Agreement is an agreement among the guarantors that if a creditor collects more than the equal share of the debt from one of them, the other guarantors will reimburse that person so that everyone is paying their fair share.
Don't worry, it's not as hard as you think. We've made it easy to put the pieces together.
The most frustrating projects are the ones where you just don’t even know where to start. We get that. When you click on Make My Document, our guide will walk you through how to set up your document with helpful tips at each step.
You can also save your document and continue later if you need to think about things. So, let’s go through it together step by step.
Ready to Make Your Guarantor Contribution Agreement?
Answer some easy questions to make your document in just minutes. Download it instantly.
You can edit, copy, print, and share your document anytime through your account. You’re all set.
After you’re done, if you need more help Made It Legal is here for you. We’re just a call or click away.