Guaranty Agreement Information Form

A guaranty agreement is used in loan situations where the lender, in addition to holding the borrower responsible for debt repayment, also demands a personal guaranty from a third party. In these situations, the guarantor becomes responsible for the debt of the borrower, and the lender may seek payment from either borrower or guarantor. Typically, the lender will first seek repayment from the borrower before resorting to the guarantor, but contrary to most consumers’ belief, the lender is not required to exhaust remedies against the borrower first.