This is an agreement between a surety and a debtor whereby the surety agrees to
guarantee the repayment of a loan by the debtor. In the event that the debtor is unable
to repay the loan, the surety will become responsible for the repayment of the loan. The
original loan agreement between the lender and the debtor can be attached under
“Schedule B” of this agreement. This agreement can be used by individuals or entities
that want to provide more security for a loan by including a guarantor.
THIS SURETY AGREEMENT (hereinafter the “Agreement”) made this __________
day of __________, _____ by and between _______________ (hereinafter the “Debtor”) and
__________________ (hereinafter the “Surety”).
THE DEBTOR AND THE SURETY HEREBY ACKNOWLEDGE AND AGREE AS
1. The Debtor and the Surety agree that the Surety shall hold the assets of the Debtor listed
on Schedule “A” annexed hereto.
2. The Debtor and the Surety hereby acknowledge that the Debtor is indebted to
___________________ (hereinafter the “Lender”) for the principal sum of __________
[AMOUNT IN WORDS] dollars ($_________ [AMOUNT IN NUMERALS]) (hereinafter vthe
“Debt”). The Debtor and the Surety further acknowledge and agree that each of the Debtor and
Surety shall remain jointly and severally liable for the Debt.
3. The Debtor and the Surety acknowledge that the Debt is in connection with a written
agreement among the Lender, Debtor, and the Surety dated the __________ day of __________,
_____ (hereinafter the “Loan Agreement”), a copy of which is annexed hereto as Schedule “B”.
4. The Debtor acknowledges and agrees that the Surety’s liability under the Debt will
terminate upon the Surety providing __________ [AMOUNT IN WORDS] (___ [AMOUNT IN
NUMERALS]) days’ written notice to the Debtor. Upon the Debtor receiving such written
notice from the Surety, any and all liability of the Surety and any obligations of the Surety to the
Debtor in respect of the Debt shall immediately cease and terminate.
5. The Debtor acknowledges and agrees that liability and the obligations of the Surety to the
Debtor shall not exceed the principal amount of the Debt.
6. The Loan Agreement and this Agreement shall not be assigned or modified without the
prior written consent of the Surety.
7. The Surety shall be responsible to pay and all amounts due under the Loan Agreement,
including losses, damages and interest which shall not exceed the principal amount of the Debt.
8. Any and all payments due and owing under this Agreement will be paid upon written
notice to the Lender together with evidence of the Debtor’s default.
9. The Surety agrees that it shall pay the amounts due and owing no later than thirty (30)
[INSTRUCTION: INSERT ANY NUMBER] days after the Surety providing evidence to the
Lender of the Debtor’s default.
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10. The Lender shall exercise normal prudent business practices and shall apply reasonable
efforts to mitigate possible losses under the Loan Agreement.
11. The Surety’s obligations will be released and void upon the failure of the Lender to
properly perfect its security interests in the assets of the Debtor and to maintain the validity of its
security interest in the assets of the Debtor.
12. In the event the Surety has made any payments under this Agreement, the Surety shall be
subrogated to all of the Lender’s rights against the Debtor and the Debtor’s assets and any other
person or entity which may be liable to the Lender as a result of the default