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The document should answer these basic questions
Who is payment guarantee?
When payment guaranty agreement?
advance payment guarantee?
How advance payment guarantee works?
Why advance payment guarantee?
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What is a payment guaranty?
A guaranty of payment is an independent agreement by a person or an entity to pay the loan when it goes into default. Even if the borrower is unable or unwilling to pay back the loan, the Bank can require the guarantor to pay it back.
What is a guarantor and guarantee?
At law, the giver of a guarantee is called the surety or the "guarantor". The person to whom the guarantee is given is the creditor or the "obligee"; while the person whose payment or performance is secured thereby is termed "the obligor", "the principal debtor", or simply "the principal".
What is a secured guaranty?
Secured Guaranty Documents means that certain Unconditional Guaranty and that certain security agreement, dated as of the Effective Date, executed by Guarantor in favor of Bank, as the same may be renewed, amended, extended or restated from time to time.
What is a guaranty and surety agreement?
Guaranty Agreement — a two-party contract in which the first party agrees to perform in the event that a second party fails to perform. A guaranty contract provides the obligee with an alternative to a surety agreement to guarantee or ensure the successful performance of a promise.