The Lease Guaranty is a crucial document in Dutch property leasing arrangements, providing security to landlords by ensuring a third party will fulfill the tenant's obligations if the tenant defaults. This document is commonly used in both commercial and residential contexts, though its terms and requirements vary significantly between these settings. Under Dutch law, the Lease Guaranty must clearly define the guaranteed obligations, their scope, and duration, while complying with the requirements of the Dutch Civil Code regarding suretyship (borgtocht). The document is particularly important in situations where landlords require additional security beyond the tenant's covenant, such as when leasing to new businesses, foreign companies, or tenants with limited financial history. The guarantee can be provided by corporate entities, financial institutions, or individuals, though different legal requirements apply to each type of guarantor.
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1. Parties: Identification of all parties: Landlord (beneficiary), Tenant (primary debtor), and Guarantor
2. Background: Context of the guarantee, including reference to the underlying lease agreement
3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Lease Agreement', and 'Guarantee Period'
4. Scope of Guarantee: Detailed description of the obligations being guaranteed, including rent, service charges, and other tenant obligations
5. Nature of Guarantee: Specification that this is an independent guarantee or joint and several liability
6. Duration: Term of the guarantee, including start date and conditions for termination
7. Payment Terms: Process and timing for payment upon demand, including notice requirements
8. Guarantor's Obligations: Detailed listing of the guarantor's commitments and responsibilities
9. Enforcement: Conditions under which the guarantee can be called upon and enforcement procedures
10. Representations and Warranties: Guarantor's confirmations regarding capacity and authority to provide the guarantee
11. Notices: Communication requirements and contact details for all parties
12. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction for disputes
1. Maximum Liability Cap: Section limiting the guarantor's maximum liability - used when parties agree to cap the guarantee amount
2. Bank Guarantee Option: Alternative provision allowing for replacement with a bank guarantee - used in commercial contexts
3. Step-In Rights: Provisions allowing guarantor to take over lease - relevant for commercial property guarantees
4. Corporate Authority: Additional representations for corporate guarantors - used when guarantor is a company
5. Consumer Protection Provisions: Additional protections and warnings - mandatory when guarantor is a private individual
6. Currency Provisions: Exchange rate provisions - used for international parties or non-Euro denominated leases
7. Tax Gross-Up: Provisions for tax implications - relevant for commercial guarantees
1. Copy of Lease Agreement: Complete copy of the underlying lease agreement being guaranteed
2. Guaranteed Amounts Schedule: Detailed breakdown of the guaranteed amounts including rent, service charges, and other obligations
3. Form of Demand: Template for making a demand under the guarantee
4. Corporate Authorization Documents: If guarantor is a company, copies of relevant board resolutions and power of attorney
5. Payment Schedule: If applicable, schedule of any periodic guarantee amount adjustments or reviews
6. Property Details: Description and details of the leased property
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