ºÚÁÏÊÓƵ

The Guaranteed Payment Agreement is a critical financial security instrument used in Malaysian business transactions where a third party (guarantor) provides assurance for the payment obligations of a principal debtor. This document type is commonly utilized in commercial lending, property transactions, and business contracts where additional payment security is required. The agreement must comply with Malaysian legislation, particularly the Contracts Act 1950 and Financial Services Act 2013, and typically includes detailed provisions on the guarantee's scope, enforcement mechanisms, and the parties' rights and obligations. It's essential in situations where creditors seek additional security for significant financial commitments, especially in commercial transactions where the principal debtor's standalone creditworthiness may not be sufficient.

1. Parties: Identification of the Principal Debtor, Guarantor, and Beneficiary with their full legal names and addresses

2. Background: Context of the underlying payment obligation and reason for the guarantee

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the document

4. Guarantee and Indemnity: Core terms of the guarantee, including the scope and nature of the guaranteed obligations

5. Payment Terms: Details of the payment obligations, including amount, currency, and payment schedule

6. Guarantor's Obligations: Specific obligations and undertakings of the guarantor, including maintaining the guarantee

7. Enforcement: Rights and procedures for enforcing the guarantee, including notice requirements

8. Representations and Warranties: Statements of fact and assurances from both the guarantor and principal debtor

9. Duration and Release: Term of the guarantee and conditions for its release or termination

10. Notices: Process and requirements for giving formal notices under the agreement

11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution formalities