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The Lease Guaranty Form is a critical document used in Philippine real estate transactions when additional security is required for a lease agreement. This document is typically employed when a landlord requires extra assurance beyond the tenant's own creditworthiness, particularly in high-value commercial leases or when dealing with new businesses or tenants with limited credit history. The guaranty form, governed by Philippine civil law, creates a legally binding commitment from a third party (guarantor) to fulfill the tenant's obligations if they default. It contains specific provisions addressing the scope of guaranteed obligations, enforcement mechanisms, and remedies available under Philippine law, while ensuring compliance with local property regulations and notarial requirements. The document can be customized to include various levels of guaranty, from limited to absolute, and may be required by property owners, management companies, or financial institutions as part of their risk management strategy.

1. Parties: Identifies all parties to the guaranty agreement: the Guarantor, the Lessor (Landlord), and the Lessee (Tenant), including their complete legal names and addresses

2. Background: Explains the context of the guaranty, referencing the main lease agreement and establishing the relationship between the parties

3. Definitions: Defines key terms used throughout the document, including 'Guaranteed Obligations', 'Lease Agreement', 'Term', and other relevant terms

4. Scope of Guaranty: Details the specific obligations being guaranteed, including rent payments, security deposits, and other lease obligations

5. Nature of Guaranty: Specifies whether it's a continuing guaranty, absolute guaranty, or limited guaranty, and defines the duration of the guaranty

6. Guarantor's Obligations: Lists the specific commitments and responsibilities of the guarantor, including payment terms and conditions

7. Representations and Warranties: Contains guarantor's declarations regarding their legal capacity and financial ability to fulfill the guaranty

8. Enforcement and Remedies: Outlines the lessor's rights and remedies in case of default by either the lessee or guarantor

9. Waiver and Consent: Details what rights the guarantor waives and what changes to the lease they consent to without affecting the guaranty

10. Governing Law and Jurisdiction: Specifies that Philippine law governs the agreement and designates the jurisdiction for dispute resolution

11. Execution: Contains signature blocks for all parties and notarization requirements