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Guaranty Agreement a two-party contract in which the first party agrees to perform in the event that a second party fails to perform. Unlike a surety, a guarantor is only required to perform after the obligee has made every reasonable and legal effort to force the principals performance.
Guaranteed Notes means the non-interest bearing promissory notes issued hereunder by Borrower to Lender under Lenders guaranteed note program.
A guaranty agreement is a contract between two parties where one party agrees to pay a debt or perform a duty in the event that the original party fails to do so. The party who makes the guaranty is called the guarantor. An agreement of this nature is often used in real estate, insurance, or financial transactions.
While the guaranty and the promissory note are clearly part of the same business transaction, from a legal perspective they are technically two different, albeit related, obligations.
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