What is a personal guarantee?
What is a personal guarantee?
It is quite common to ask, in order to guarantee a loan, that the director establishes a personal guarantee. This commits the director to his own assets and requires him to personally assume the repayment of debts if they remain unpaid by the company. This personal guarantee must be accompanied by a handwritten text stipulating that the manager is aware of the scope of the commitments made and their amount. In the event of death, the guarantee is passed on to the heirs at the time of succession, if this is accepted.
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Updated on: 05/04/2022
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