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Guarantor Declaration Form Template for Denmark

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Key Requirements PROMPT example:

Guarantor Declaration Form

I need a Guarantor Declaration Form under Danish law for three company directors jointly guaranteeing a business loan of 2 million DKK to our manufacturing company, with the guarantee period starting March 1, 2025.

What is a Guarantor Declaration Form?

The Guarantor Declaration Form is a crucial document in Danish business and financial transactions, used when one party agrees to guarantee the obligations of another. This document is essential in various scenarios, including loan agreements, lease contracts, and business transactions, where additional security is required beyond the principal debtor's commitment. The form must comply with Danish legal requirements, including specific provisions under the Danish Contracts Act and Financial Business Act. It typically includes detailed information about the parties involved, the scope of the guarantee, enforcement conditions, and any limitations on the guarantee amount. Special considerations apply when the guarantor is a consumer, requiring additional protective clauses and mandatory disclosures. The document serves as a legally binding commitment and must be carefully drafted to ensure enforceability while protecting all parties' interests.

What sections should be included in a Guarantor Declaration Form?

1. Parties: Identification of the Guarantor, the Creditor, and the Principal Debtor, including full legal names, addresses, and registration numbers where applicable

2. Background: Brief context explaining the underlying obligation and the reason for the guarantee

3. Definitions: Key terms used throughout the declaration, including 'Guaranteed Obligations', 'Principal Debt', and other relevant terms

4. Guarantee Declaration: The formal statement of guarantee, specifying the nature and extent of the guarantee (whether it is unlimited or limited)

5. Scope of Guarantee: Detailed description of what obligations are covered by the guarantee, including maximum amount if applicable

6. Duration: The term of the guarantee and any conditions for its termination

7. Guarantor's Obligations: Detailed description of the guarantor's responsibilities and when/how they must perform

8. Enforcement: Conditions under which the guarantee can be called upon and the process for doing so

9. Representations and Warranties: Guarantor's confirmations regarding their capacity and authority to provide the guarantee

10. Signature Block: Space for formal execution of the document, including date and witness requirements if applicable

What sections are optional to include in a Guarantor Declaration Form?

1. Financial Covenants: Used when the guarantor must maintain certain financial metrics or conditions

2. Security: Include when the guarantee is secured by specific assets or collateral

3. Multiple Guarantors: Additional provisions needed when there is more than one guarantor, defining joint and several liability

4. Consumer Protection Notices: Required when the guarantor is a consumer, including mandatory warnings and cooling-off rights

5. Currency Provisions: Include when the guaranteed obligation is in a different currency from the guarantee

6. Tax Gross-Up: Include when tax implications need to be addressed in the guarantee payments

What schedules should be included in a Guarantor Declaration Form?

1. Schedule 1 - Guaranteed Obligations: Detailed list or description of the specific obligations being guaranteed

2. Schedule 2 - Form of Demand: Template for making a formal demand under the guarantee

3. Schedule 3 - Guarantor's Assets Statement: If required, a statement of the guarantor's financial position and major assets

4. Appendix A - Underlying Agreement Reference: Copy or key terms of the agreement that is being guaranteed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























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Relevant Industries

Financial Services

Banking

Real Estate

Construction

Manufacturing

Retail

Professional Services

Corporate Services

Small Business

Agriculture

Relevant Teams

Legal

Finance

Risk Management

Compliance

Credit Administration

Corporate Banking

Business Development

Treasury

Contract Administration

Relevant Roles

Legal Counsel

Financial Director

Credit Manager

Risk Manager

Compliance Officer

Contract Manager

Business Development Manager

Account Manager

Corporate Banker

Chief Financial Officer

Legal Administrator

Finance Manager

Treasury Manager

Industries






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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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