Cosigner Agreement - Promissory Note

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									In this Cosigner Agreement, a co-signer signs as a guarantor on behalf of borrower.
The Cosigner assumes the responsibility of paying back the loan, in the event the
borrower defaults. This agreement contains both standard clauses as well as
opportunities for customization to ensure that the understandings of the parties are
properly set forth. This document is most useful to persons serving as a cosigner on
behalf of a borrower.
Name of Cosigner: __________________________________
Address of Cosigner: ________________________________
Name of Borrower: ________________________________
Name of Lender: ___________________________________

1. Borrower has agreed to pay Lender the amount indicated in the attached _________
[Promissory Note or Loan] _________ under the terms specified in the Promissory Note or

2. Cosigner agrees to guarantee this debt and accepts full responsibility for the payment of the
same if and only if the Borrower fails to pay the debt.

3. Cosigner agrees to guarantee payment of the debt although he or she may not receive any of
the proceeds of the loan or promissory note.

4. Cosigner understands that if Borrower doesn't pay the debt on time, it may become a part of
Cosigner's credit record.

5. Cosigner agrees that if Borrower doesn't pay the debt at all, Cosigner will be legally obligated
to do so.

6. Cosigner understands that Cosigner may have to pay additional fees including late fees or
collection costs, which increases the amount due.

7. Cosigner understands that the Lender can collect this debt from Cosigner without first trying
to collect from Borrower or against any other co-signer. [Depending on the state, this may not
apply. If state law forbids a creditor from collecting from a cosigner without first trying to
collect from the primary debtor, this sentence may be omitted. For instance for California,
West Virginia the above provision applies. Whereas, for Iowa, New York and South Carolina
it does not. Check your state’s law regarding this provision.]

8. Cosigner understands that Lender can use the same collection methods against Cosigner that
can be used against Borrower, including filing a lawsuit against Cosigner, and if the lawsuit is
successful, garnishing Cosigner's wages, seizing other personal property of Cosigner, and putting
a lien against Cosigner's house.

Cosigner's signature: ________________________________
Date: ___________________________________________
Print name: _______________________________________
Location: city or county where signed___________________

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