Obtain a guarantee for repayment of a mortgage loan with this Guarantee of Mortgage form for the Province of Alberta.
- The guarantee is an unconditional guarantee from the guarantor to repay the principal, interest and all other sums owing by the mortgagor under the mortgage.
- The guarantor's liability will be for all purposes as if the guarantor was primarily liable under the mortgage security, and not just as a surety.
- The file also includes corporate resolutions to be passed by the shareholders and directors of the corporate guarantor, authorizing the corporation to give the guarantee.
This Alberta Guarantee of Mortgage form is provided in MS Word format and is fully editable.
GUARANTEE WHEREAS «LENDER» (the “Lender”) has lent or has agreed to lend to «BORROWER» (the “Mortgagor”) the sum of ____________________________________ DOLLARS ($___________) (the “Principal Sum”) repayable with interest thereon at the rate, in the manner and at the times set out in a certain mortgage dated as of the ____ day of _______________, _____, a copy of which is attached hereto (the “Mortgage”), granted by the Mortgagor to the Lender and registered (or to be registered) on those lands described as: (legal description) (the “Lands”) AND WHEREAS ________________________ (“the Guarantor”) is financially interested in the Mortgagor and has agreed to execute these presents in consideration of the advance of the Principal Sum, or any portion thereof, to the Mortgagor by the Lender; AND IN FURTHER CONSIDERATION of the sum of ONE DOLLAR ($1.00) and other good and valuable consideration, the receipt and sufficiency of which the Guarantor hereby acknowledges, the Guarantor hereby covenants and agrees with the Lender as follows: 1. The Guarantor unconditionally guarantees to the Lender the due payment of the Principal Sum, interest and other sums at the times and in the manner set out in the Mortgage, and the due performance and observance of all covenants, conditions, stipulations and provisos contained in the Mortgage and in any and all other security granted or to be granted with respect thereto, including, without restricting the generality of the foregoing, any Chattel Mortgage and any Assignment of Leases and/or Rentals (herein together with the Mortgage referred to as the “Security”). Reference to the Security in this Guarantee shall include the Security or any part thereof as it is from time to time amended whether in the past, present or future. 2. The liability of the Guarantor to the Lender shall be for all purposes as if the Guarantor was primarily liable under the Security and not liable only as surety for the obligations of the Mortgagor and no discharge of the Mortgagor's obligations under the Security or any part thereof whether by operation of law, bankruptcy or otherwise, shall release the Guarantor from liability hereunder and without restricting the generality of the foregoing, the Guarantor shall not be released by reason of any neglect or default of the Lender which might otherwise operate as a discharge of the Guarantor or the releasing in whole or in part of the properties and assets mortgaged, or the granting of time, releases or other indulgences to the Mortgagor. 3. No dealings of any kind between the Lender and the Mortgagor, whether with or without notice to the Guarantor, shall exonerate or release the Guarantor in whole or in part, and in particular, and without limiting the generality of the foregoing, the Lender may give up, modify and amend the Security or any part thereof, (including changes in principal, interest, method of calculation of interest, amortization or otherwise) grant any indulgence, extension, release or postponement, accept compositions, grant releases and discharges or partial releases and discharges of the Security or any part thereof, waive any covenant or provision in the Security or any part thereof, or any obligation of the Mortgagor, take or release any other securities or other guarantees from performance, apply all monies received from the Mortgagor or the Guarantor from other securities upon such part of the amounts owing under the Security as the Lender thinks fit and otherwise deal with the Mortgagor and the Guarantor as the Lender in its absolute discretion thinks fit without notice to and without obtaining the consent of the Guarantor. -2- 4. The Lender shall not be concerned to see or inquire into the powers or capacity of the Mortgagor or its directors or other agents acting or purporting to act on its behalf in respect of the creation and issuance of the Security and this Guarantee shall be a valid and continuing one and binding upon the Guarantor even though such creation and issuance shall be in excess of the powers of the Mortgagor or its directors or shall be in any way irregular or defective and any declaration or adjudication that the Security or any part thereof taken is unenforceable shall not affect, discharge or lessen the liability of the Guarantor hereunder. 5. The Lender at any time or times may extend or amend the time and method for payment of all or any of the monies mentioned in or secured by the Security or any part thereof, and release from the Security or any part thereof, any part of parts of the Lands, or vary the terms, covenants and conditions therein contained, and either upon or without obtaining payment of any portion of the monies thereby secured, and no such extension, agreement, release or variation shall affect the liability of the Guarantor pursuant to this Guarantee. 6. Any account settled or stated by or between the Lender and the Mortgagor or admitted by the Mortgagor shall be accepted by the Guarantor as conclusive evidence that the balance or amount thereby appearing due by the Mortgagor to the Lender is so due. The Guarantor renounces all benefits of discussion and division. 7. The Guarantor will not at any time claim to be subrogated in any manner to the position of the Lender and will not claim the benefit of the Security at any time held by the Lender; provided, however, that in the event of the Guarantor paying the Lender all the monies remaining unpaid under the Security, then the Guarantor shall be entitled, on demand made by the Guarantor in writing, to the assignment of such Security then remaining in the hands of the Lender. 8. This Guarantee shall be in addition to and not in substitution for any other guarantees or other securities which the Lender may now or hereafter hold in respect of the Security and the Lender shall be under no obligation to marshal in favour of the Guarantor any other guarantees or other securities or any money or other assets which the Lender may be entitled to receive or may have a claim upon. Neither the loss of nor the unenforceability of any other guarantees or securities including the Security which the Lender may now or hereafter hold, whether occasioned by any default by the Lender or otherwise, shall in any way limited or lessen the Guarantor's liability hereunder. 9. The Lender shall not be bound to exhaust its recourse against the Mortgagor or other parties before requiring payment of the Guarantor, and the Lender may enforce the various remedies available to it and may realize upon the Security or any part thereof, in such order as the Lender may determine. 10. If there is more than one Guarantor of the Principal Sum or any part thereof, the release of any of the Guarantors from its or their liability thereunder shall not affect the liability of this Guarantor or the remaining Guarantor or Guarantors which guarantees shall remain unimpaired and still in full force and effect. In any case where this instrument is executed by more than one party, all covenants, agreements and obligations herein contained shall be joint and several. 11. In the event that the Mortgagor shall become bankrupt or insolvent or shall be subject to the provisions of the Bankruptcy Act, the Companies Creditors Arrangement Act, the Winding-up Act, or any other Act for the benefit of creditors or go into liquidation either voluntarily
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