Percentage Guaranty Sample Clauses
A Percentage Guaranty clause establishes that a guarantor is responsible for guaranteeing only a specified percentage of an obligation, rather than the entire amount. For example, if a loan is guaranteed at 40%, the guarantor would only be liable for that portion of the debt if the borrower defaults, with the remaining risk borne by others. This clause is commonly used to allocate risk among multiple guarantors or to limit the exposure of a single guarantor, ensuring that no one party is fully responsible for the entire obligation.
Percentage Guaranty. In consideration of, and in order to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make the Loans and each Issuing Bank to issue Letters of Credit thereunder, the Guarantor hereby absolutely, unconditionally and irrevocably guarantees the punctual payment and performance, when due, whether at stated maturity, by acceleration or otherwise, of the Obligations (including reimbursement obligations) of FEP, now or hereafter existing under the Credit Agreement and the other Loan Documents to which FEP is a party, whether for principal, interest (including interest accruing or becoming owing both prior to and subsequent to the commencement of any proceeding against or with respect to FEP under any chapter of Title 11 of the United States Code, as now or hereafter in effect, or any successor thereto (the “Bankruptcy Code”)), cash collateralization of Letters of Credit, fees, commissions, expenses (including reasonable attorneys’ fees and expenses) or otherwise (all such Obligations being the “Guaranteed Obligations”); provided, however, that the Guarantor’s liability under its guaranty set forth above shall in no event exceed an amount equal to its Stated Percentage of the Guaranteed Obligations (it being understood, however, that in the manner and to the extent provided in the following Section 2.02 the Guarantor may, in its sole discretion and being under no obligation to do so, elect to make payments in respect of the Guaranteed Obligations, and/or assume all obligations under one or more Other Guaranty Agreements, and thus pay, or become obligated to pay, Guaranteed Obligations in excess of an amount equal to its Stated Percentage thereof). The guaranty set forth in this Section 2.01 is a guaranty of payment and not a guaranty of collection, and the obligations of the Guarantor in respect thereof shall not in any way be dependent upon or affected by any payment, or failure of payment, by an Other Guarantor of any amount owing by it under an Other Guaranty Agreement or conditioned upon any attempt to collect from FEP or any other action, event, occurrence or circumstance whatsoever. The Guarantor also agrees to pay any and all expenses incurred by each Lender and the Administrative Agent in enforcing this Agreement against the Guarantor.