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The Personal Guaranty Agreement is a crucial security document used in Philippine business and financial transactions when additional assurance is needed for the performance of obligations. It is commonly required by banks, financial institutions, and businesses when extending credit or entering into significant commercial arrangements. The agreement must comply with the Civil Code of the Philippines, particularly Articles 2047-2084 which govern guaranty contracts. It's essential when a creditor requires additional security beyond the principal debtor's commitment, especially in situations involving substantial loans, lease agreements, or major commercial contracts. The document details the guarantor's obligations, enforcement mechanisms, and rights of all parties, while ensuring compliance with Philippine legal requirements including proper execution and notarization.

1. Parties: Identifies the Guarantor, the Creditor, and the Principal Debtor

2. Background: Explains the context of the guaranty, including reference to the principal debt or obligation being guaranteed

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Event of Default', and other relevant terms

4. Guaranty: Core section detailing the guarantor's promise to pay or perform the guaranteed obligations

5. Scope of Guaranty: Defines the extent and limitations of the guaranty obligation

6. Nature of Guaranty: Specifies whether the guaranty is continuing, irrevocable, unconditional, or otherwise

7. Representations and Warranties: Guarantor's confirmations regarding their capacity, authority, and financial condition

8. Preservation of Rights: Creditor's rights in relation to other security and ability to vary underlying obligations

9. Payments: Terms regarding how and when payments must be made, including provisions for taxes and set-off

10. Costs and Expenses: Responsibility for legal and other costs related to the guaranty

11. Duration and Release: Terms regarding how long the guaranty remains in effect and conditions for release

12. Notices: Communication requirements and contact details for all parties

13. Governing Law and Jurisdiction: Confirms Philippine law applies and specifies jurisdiction for disputes

14. Execution: Signature blocks and execution formalities