Unlimited Guaranty

Generates a complete Unlimited Guaranty giving the Lender direct, uncapped recourse against a Guarantor for all present and future Borrower obligations.

Quick Start

Collect before drafting:

Credit documents — loan agreement, note, or facility defining the guaranteed Obligations
Parties — full legal names of Guarantor, Borrower, and Lender
Guarantor type — individual or entity (drives signature block and authority recitals)
Financial reporting — whether Lender requires ongoing financials from Guarantor

Document Sections

| # | Section | Key Content | |---|---------|-------------| | 1 | Definitions | Obligations (all present/future amounts), Credit Documents, parties | | 2 | Guaranty of Payment | Absolute, unconditional; payment not collection — Lender may proceed directly against Guarantor | | 3 | Unlimited Liability | No cap; covers principal, interest, fees, costs, expenses, indemnities | | 4 | Waivers | Full checklist below | | 5 | Subrogation & Reimbursement | Subordinated/waived until indefeasible payment in full | | 6 | Continuing Guaranty | Survives modifications, renewals, extensions; covers post-execution obligations | | 7 | Financial Covenants (if required) | Annual financials, MAC notice, other reporting | | 8 | Governing Law & Jurisdiction | Match underlying loan documents | | 9 | Jury Trial Waiver | Standard commercial waiver | | 10 | Signature Block | Individual: name + date; Entity: officer title + authority recital |

Required Waivers (Section 4)

Guarantor must waive all of the following:

Presentment, demand for payment, protest, notice of dishonor
Notice of acceptance of Guaranty
Notice of creation or incurrence of new Obligations
Notice of any Borrower or Lender action or inaction
Right to require Lender to proceed first against Borrower or exhaust collateral
Defense based on modification, extension, renewal, or amendment of Obligations
All suretyship defenses (collateral impairment, co-guarantor release, etc.)
Right to require marshaling of assets

Subrogation Language (Section 5)

Until all Obligations are indefeasibly paid in full and all Lender commitments are terminated, Guarantor waives and subordinates: (i) any subrogation right to Lender's claims against Borrower; (ii) any reimbursement or indemnity right from Borrower; and (iii) any right to participate in Lender-held security.

Pitfalls & Checks

Payment not collection — Section 2 must expressly allow Lender to proceed against Guarantor without exhausting Borrower remedies or collateral
"Indefeasibly paid in full" — always use this phrase, not merely "paid in full," to protect against bankruptcy preference/clawback
Governing law — must match the underlying loan documents' choice of law and forum
Entity authority — for entity Guarantors, include officer certificate or board resolution recital if Lender requires
Continuing guaranty — confirm language covers obligations arising after execution
[VERIFY] US jurisdiction only; state suretyship statutes may impose additional requirements
[VERIFY] Anti-deficiency statutes (CA, AZ, others) may limit enforceability of certain waivers — flag for attorney review