A personal guarantee is a contractual promise made by an individual, typically a business owner or executive, to assume responsibility for a debt or obligation if the primary borrower defaults. This clause is often used to provide lenders or creditors with additional assurance of repayment, thereby reducing their risk when extending credit or loans.
Personal Guarantees. APSI and TTG shall have all personal guarantees of T.Evans, J.Evans, and J.Montel released on or before December 31, 2024. Pending the full release of all personal guarantees, no action may be taken by APSI, TTG, or any of their agents, in connection with any asset or collateral that is secured with a personal guarantee of any or all of T.Evans, J.Evans, and J.Montel absent prior notice and written consent by all guarantors. APSI and/or TTG shall take no action that materially increases the risk attached to the personal guarantees of T.Evans, J.Evans, and J.Montel; nor shall APSI and/or TTG fail to take any action that would reduce the risk attached to the personal guarantees of T.Evans, J.Evans, and J.Montel.
3. Guarantor hereby accepts the terms of this Agreement and any applicable Annual Guarantee Fee payments as consideration for his providing personal guarantees of the Company Debt until such time as the Company Debt is fully repaid and the personal guarantees of Guarantor are extinguished.
All of these claims are backed by personal guarantees from James C. Justice, II and his wife, Cathy L. Justice. A number of them are also backed by personal guarantees from James C. Justice, III, Governor Justice’s son.
(i) Protection Against Personal Guarantees. Should the Executive be required to personally guarantee any debt(s) held by the Company, at any time in the past or future, the Company will first exhaust all of its assets to satisfy any personal guarantee(s) prior to the Executive being required to personally satisfy such debts. Any personal guarantees made by the Executive for the benefit of the Company must first be pre-approved in writing by the President and shall carry an annual fee payable to the Executive in the amount of a percent of the guaranteed amount, payable monthly, with the percent to be agreed between the Executive and the Company at the time of the personal guarantee request. This Section 4(j) shall survive the Term of this Agreement to the extent that any personal guarantees made by the Executive for the benefit of the Company remain outstanding.
Officer Personal Guarantees Completing recent funding transactions and restructuring our SBA loans has required the personal guarantees of both Robert Mackey, our Chief Operating Officer, and William Robinson, our Chief Executive Officer. The recent funding has been dedicated to the payment of our auditors, accountants, and legal to complete our audit and bring our SEC filings current. In lieu of cash, our Board of Directors has agreed to the loans and guarantees made by officers and directors and to approve the issuance of 45,000 shares of our Preferred D Shares to our Chief Operating Officer, Robert Mackey, 5,000 Preferred D shares to our Controller, Tyler Mackey, 25,000 Preferred D shares to our Chief Compliance Officer, Brian Kistler, and 5,000 Preferred D Shares to our Board Member, Steve Chen.
B. Pursuant to the MIPA, certain indebtedness of Standard will remain outstanding which is personally guaranteed by the owners of Standard. Pursuant to the MIPA, Rizzo will personally guarantee the obligations of Standard and its owner under the personal guarantees (“Rizzo Personal Guarantee”).
1. Guaranty of Rizzo. Rizzo has agreed to absolutely, unconditionally, and irrevocably guaranty payment of any indebtedness incurred by the Standard owners under the personal guarantees of the Standard indebtedness estimated to be up to $4,700,000 as of the date of this Agreement pursuant to a Guaranty Agreement between Rizzo and the owners of Standard dated as of the date of the MIPA (the “Guaranty”).
The lease also has personal guarantees from the owners of Dom F. The Apotheke Lease is structured to provide an annual straight-line rent of approximately $342,000, representing an estimated yield on costs of over 18%. The project is currently under construction and is targeted to be completed by year end.
c. Personal Guarantees Borrowings under the Credit Facilities, as defined in Note 11, with HSBC were previously collateralized by the personal guarantees of Mr. Choi and Mr. Ng Tsze Lun. These guarantees were released as of August 12, 2019. (See Note 11).
Previously, the HSBC Facility was collateralized by the guarantees of us, Jerash Garments, Treasure Success and the personal guarantees of Mr. Choi and Mr. Ng Tsze Lun. The personal guarantees were released by HSBC in August 2019. Jerash Garments is also required to maintain an account at HSBC for receiving payments from VF Sourcing Asia S.A.R.L. and its related companies.
The personal guarantees provided in the original note shall remain in place.
The Company also agreed to indemnify Mr. Yeros with respect to certain personal guarantees Mr. Yeros made on behalf of the Company and to a general release of claims against Mr. Yeros.
The Company did not provide any collateral or personal guarantees for the Loan, nor did the Company pay any facility charge to the government or to the Lender.
The Company’s obligations under the Note are not secured by any collateral or personal guarantees.
A personal guarantee is a legal commitment made by an individual to repay a loan or debt if the primary borrower defaults. It serves as a form of security for lenders, assuring them that even if the applicant is unable to pay, the guarantor will take on the responsibility. Personal guarantees are often required when the borrower has limited credit history or insufficient collateral.
A personal guarantee should be used when:
Writing a personal guarantee involves clearly outlining the terms, responsibilities, and conditions of the guarantee. Below are key steps to consider:
Example:
“I, [Your Name], hereby personally guarantee the repayment of the loan amount of $50,000 borrowed by [Business Name] from [Lender Name]. This guarantee remains in effect until the full loan amount is repaid or until all obligations under the loan agreement are satisfied. Signed, [Date].”
Personal guarantees are commonly found in the following types of contracts:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
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