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Guaranty


Overview
- The Guaranty is an agreement that allows an individual to personally guarantee that a company will fulfill the obligations of a contract.  A corporation may also use the Guaranty to guarantee the obligations of other corporations.
- Investors, banks, and major clients can sometimes be persuaded to work with a small company if someone else, either an individual or another company, guarantees that the company will meet the obligations of its contracts.
- If the company does not meet the obligations of the guaranteed contract, the guarantor is then personally liable for the company's obligations.  
- The individual guarantor does, however, then have the right to file a claim against the company for the amount paid on the company's behalf.

When You Need It
- If you are attempting to borrow money and the bank requires another individual or company to provide a financial guaranty in order to obtain the financing.
- If you are asked to provide a financial guaranty to an individual or company to assist in obtaining financing.


Getting Started

You will need:
- The name and address of the individual or company providing the guaranty.
- A detailed description of the agreement and/or transaction being guaranteed and the effective date of the agreement.
- The name and address of the individual or company receiving the guaranty.

When to Review and Revise 
- To correct the information contained in the request.
- To document a request to another credit reporting agency.