About Product
Where a Lender lends money or assets to another person or entity, they may choose to obtain a personal guarantee to secure the loan from the Borrower or a party linked to the Borrower.
Can this document be digitally signed?
NOT RECOMMENDED. As this document, or pack of documents, includes the establishment of a deed and/or a signature requires witnessing, TGA Legal have advised that a digital signature on any part of the assembled document is NOT legally binding. This is in accordance with all current legislation. LightYear Docs will regularly review this position as part of its internal review process.
General Information
It is standard practice by banks and other lending institutions to require personal guarantees from directors, trustees or other key parties when entering into a loan agreement. For those transactions between non-bank parties such as a SMSF lending to a third party, it is vital that standard lending practice be applied and personal guarantees put in place for all borrowing parties and their representatives.
Benefits
- Simple and easy to effect
- Provides security for a lender where no property mortgage is available
- It can be used widely by a lender with a separate personal guarantee to be secured from all borrowers and where the borrower is an entity from representatives of the borrower such as directors, trustees or even shareholders and beneficiaries
- Signed off by lawyers TGA Legal
Frequently Asked Questions
Can I get a sample of this document?
Yes, please email support@lightyeardocs.com.au to request a sample document for you to review.
Is a personal guarantee necessary?
It is standard practice by banks and other lending institutions to require personal guarantees from directors, trustees or other key parties when entering into a loan agreement. For those transactions between non-bank parties such as a SMSF lending to a third party, it is vital that standard lending practice be applied and personal guarantees put in place for all borrowing parties and their representatives.
Is the Personal Guarantee document legal?
It is a legal document that has been prepared by our lawyer TGA Legal and operates to define the roles of each party, the employer or employee. Without this agreement any failure by the borrower to repay is unsecured.
How many should I use?
As many as possible, any borrowing party to the transaction should sign a personal guarantee plus if the lender can secure it other related parties to the borrower, even if a mortgage deed is secured.
Is there any training on the LightYear Docs Personal Guarantee?
There is extensive Loan and Personal Guarantee training on www.lightyeardocs.com
Do you have details on the LightYear Docs that I can give my clients?
We have a range of videos on LightYear Docs for clients including the use of a Personal Guarantee.
Is the LightYear Docs Personal Guarantee reviewed regularly?
All LightYear Docs documents form part of the LightYear Docs internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is included on this website.
Can this document be digitally signed?
NOT RECOMMENDED. As this document, or pack of documents, includes the establishment of a deed and/or a signature requires witnessing, TGA Legal has advised that a digital signature on any part of the assembled document is NOT legally binding. This is in accordance with all current legislation. LightYear Docs will regularly review this position as part of its internal review process.
What happens after I purchase this document?
After you purchase this document, you will experience first-hand the power of our assembly engine, HotDocs. An interview session will appear in what is called the HotDocs iFrame. Through the use of the iFrame technology, we are able to create document templates in minutes, versus months of coding through other methods. The iFrame also allows for rapid integrations and documentation to be assembled instantly in "lines" or packs of documents.
Can I edit my document after it has been completed?
Your document will be available to edit from the LightYear Vault for 30 DAYS after you have completed the interview process, at which point it will be locked for future edits. Your completed documents will be listed under "My Vault" from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to make edits within the first 30 DAYS.
Can I save a document to complete later?
Yes, provided you select save, you can exit the interview process at any time. All documents that have been purchased and not yet assembled will be saved under "My In Progress Docs" and are accessible from the drop-down menu in the top right-hand corner after you login. This is also where you re-launch an "interview" to continue the interview process and assemble your document.