Guarantees by Clause Samples
The "Guarantees by" clause establishes that a party, often a third party or parent company, promises to fulfill certain obligations or ensure the performance of another party under the contract. In practice, this means that if the primary party fails to meet its contractual duties—such as payment, delivery, or performance—the guarantor is legally required to step in and satisfy those obligations. This clause is commonly used in commercial agreements to provide additional security to the beneficiary, reducing the risk of non-performance and increasing confidence that contractual commitments will be honored.
Guarantees by. (x) the Borrower or a Subsidiary Guarantor (including any Restricted Subsidiary the Borrower elects to cause to become a Subsidiary Guarantor in connection therewith) of Indebtedness permitted to be Incurred by the Borrower or a Subsidiary Guarantor in accordance with the provisions of this Agreement; and (y) Non-Guarantor Subsidiaries of Indebtedness Incurred by Non-Guarantor Subsidiaries in accordance with the provisions of this Agreement;
Guarantees by a Subsidiary of Debt of the Borrower or Debt of another Subsidiary;
Guarantees by a Loan Party of leases of the Borrower and the subsidiaries of the Borrower (other than Capital Lease Obligations) entered into in the ordinary course of business; provided that the aggregate amount of Guarantees by Loan Parties of leases of subsidiaries of Borrower that are not Loan Parties is subject at all time to the limitations set forth in paragraph (c) of this Section 6.04;
Guarantees by. (i) the Borrower of Debt referred to in subclause (i) of clause (g) above and (ii)