VIEWS: 14 PAGES: 5 CATEGORY: DocStore POSTED ON: 8/1/2014
This Completion Guarantee can be used to guarantee the full and faithful performance of a borrower in lieu of a construction project. This guarantee is between three parties, the guarantor, the borrower, and the lender, whereby the guarantor promises that the borrower will complete the construction lien-free and in a timely manner pursuant to the agreement between the lender and the borrower. This guarantee is ideal for individuals or small businesses that want to guarantee the full and faithful performance of a borrower’s obligations to a lender in lieu of a construction project.
Completion Guarantee This Completion Guarantee can be used to guarantee the full and faithful performance of a borrower in lieu of a construction project. This guarantee is between three parties, the guarantor, the borrower, and the lender, whereby the guarantor promises that the borrower will complete the construction lien-free and in a timely manner pursuant to the agreement between the lender and the borrower. This guarantee is ideal for individuals or small businesses that want to guarantee the full and faithful performance of a borrower’s obligations to a lender in lieu of a construction project. COMPLETION GUARANTEE THIS COMPLETION GUARANTEE (hereinafter referred to as the “Guarantee”) is hereby made as of ___________________ [Instructions: Insert the date of this Guarantee] by ___________________ [Instructions: Insert the Guarantor’s name] (hereinafter referred to as the “Guarantor”), of __________________________ [Instructions: Insert the Guarantor’s address] to and for the benefit of ___________________ [Instructions: Insert the Lender’s name] (hereinafter referred to as the “Lender”), of ________________________. [Instructions: Insert the Lender’s address] WHEREAS, Lender entered into a written agreement (hereinafter referred to as the “Agreement”) with ____________________ [Instructions: Insert the Borrower’s name] (hereinafter referred to as the “Borrower”) dated __________________ [Instructions: Insert the date of the Agreement between the Lender and the Borrower] whereby Lender agreed to loan Borrower the finance costs of constructing the work of improvement located at __________________________ [Instructions: Insert the location of the construction] (the “Improvement”), provided that Lender receives this Guarantee from Guarantor guaranteeing the lien-free completion of the construction of the Improvement and the performance of other material covenants of the Agreement. NOW, THEREFORE, in consideration of the promises contained in this Guarantee and to induce Lender to enter into the Agreement, Guarantor and Lender agree as follows: 1. GUARANTEE Guarantor unconditionally guarantees that: (a) Borrower shall commence, substantially complete and pay for the Improvement in accordance with the express terms of the Agreement, without substantial deviation therefrom unless approved by Lender in writing; and (b) except for this Guarantee, Borrower shall keep the premises free and clear of all liens connected with or arising from the construction, equipping, completion and operation of the Improvement. 2. DEFAULT BY BORROWER In the event that Borrower is declared by Lender to be in default, by failing to fully and faithfully perform the Agreement or by breaching any guarantee set forth herein, written notice shall be given to Guarantor within __________ (___) [Instructions: Insert the number of days Lender has to notify Guarantor of Borrower’s default] days after such default is known to Lender. Upon receipt of such notice, Guarantor shall (a) diligently proceed to cure such default and procure completion of the Improvement; (b) fully pay and discharge all claims for labor performed and material and services furnished in connection with the construction of the Improvement; and (c) pay such amounts as may be necessary to release and discharge all claims of stop notices, mechanic’s liens, material supplier’s liens, and equitable liens, if any, that may come into existence in connection with the construction of the Improvement. Guarantor shall be responsible for paying all costs and expenses incurred hereunder and shall also pay to or reimburse Lender for all expenses incurred by, or other monies due to Lender pursuant to the Agreement. Guarantor hereby waives any and all legal requirements that Lender institute any © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 2 action or proceeding at law or in equity against Borrower, or anyone else, or exhaust Lender’s remedies against Borrower, or anyone else as a condition precedent to bringing any action or actions against Guarantor upon this Guaranty. 3. NATURE OF GUARANTEE This Guarantee guarantees completion of the Improvement. This Guarantee shall remain in full force and effect until all indebtedness owed by Borrower pursuant to the Agreement has been paid in full to Lender, its successors or assigns. This Guaranty is an original and independent obligation of Guarantor, separate and distinct from Borrower's obligations to Lender under the Agreement. The obligations of Guarantor to Lender under this Guaranty are direct and primary, regardless of the validity or enforceability of the Agreement. This Guaranty is for the benefit of Lender, and is not for the benefit of any third party. 4. WAIVER Guarantor shall not be released by any act or thing which might be construed as a legal or equitable discharge of a guarantor or surety, or by reason of any waiver, extension, modification, forbearance or delay or other act or omission of Lender. Guarantor hereby expressly waives and surrenders any defense to liability hereunder based upon any of the foregoing acts, omissions, things, agreements or waivers or any of them (other than completion), it being the purpose and intent of the parties hereto that the obligations of the undersigned hereunder are absolute and unconditional under any and all circumstances. Guarantor hereby waives the right to seek payment, claim, subrogation and/or reimbursement from Borrower in the event Guarantor makes payment to Lender or otherwise specifically performs pursuant to the terms hereof. Guarantor shall have no right of subrogation, and waives any right to enforce any remedy that Lender now has or may hereafter have against Borrower, and waives any benefit of and any right to enforce any remedy that Lender now has or may hereafter have against Borrower, and waives any benefit of and any right to participate in any security now or hereafter held by Lender. This guaranty shall be a continuing, absolute and unconditional guaranty regardless of the validity, regularity or enforceability of any of said obligations or purported obligations or the fact that a security interest, as a lien on any collateral security may not be granted to, conveyed to, or created in favor or Lender or that collateral security may be subject to equities or defenses or claims in favor of others or may be invalid or defective in any way and for any reason including any action, or failure to act, by Lender. 5. MISCELLANEOUS a. This Guarantee constitutes the entire agreement between the parties hereto with respect to the specific subject matter hereof and supersedes all prior agreements or understandings of any kind with respect to the specific subject matter hereof. b. In the event that any provision or part of this Guarantee shall be deemed void or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and remain in full force and effect. © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 3 c. Any and all additions, deletions, or modification to this Guarantee must be in writing and signed by the parties or it shall have no effect and shall be void. d. This Guarantee is binding upon and shall inure to the benefit of the respective successors, licensees and/or assigns of the parties hereto. Notwithstanding the foregoing, neither party may assign or transfer its rights or delegate its obligations under this Guarantee without the other party's prior written consent, which consent will not be unreasonably withheld. e. All notices, statements and/or requests for approvals that either party hereto is required or may desire to give to the other party shall be given in writing by addressing the same to the other party at the addresses set forth above, or at such other address as may be designated in a notice to the other party. Notices shall be made by personal delivery, courier, or by certified U.S. mail, return receipt requested, postage prepaid. Notice shall be deemed given on the date of delivery to the other party. f. This Guarantee shall be governed in accordance with the laws of the State of __________________ [Instructions: Insert the state’s laws that will govern this agreement] applicable to agreements to be wholly performed therein, without giving effect to its laws governing conflict of laws. IN WITNESS WHEREOF, the parties have executed this Guarantee as of the date first set forth above. LENDER: GUARANTOR: __________ [Instructions: Insert name] __________ [Instructions: Insert name] __________________________ __________________________ By: Authorized Signatory By: Authorized Signatory © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 4