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Financial institutions, including banks, often require guarantors, and sometimes borrowers, secure “independent legal advice” to fully understand the commitments they are assuming by participating in a loan agreement. Who needs to seek Independent Legal Advice? Company director guarantors: It’s mandatory for guarantors to receive independent legal advice, validated by a certificate. Non-borrower guarantors: Similarly, these […]
Financial institutions, including banks, often require guarantors, and sometimes borrowers, secure “independent legal advice” to fully understand the commitments they are assuming by participating in a loan agreement.
Company director guarantors: It’s mandatory for guarantors to receive independent legal advice, validated by a certificate.
Non-borrower guarantors: Similarly, these guarantors must obtain independent legal advice and provide a certificate.
Parental guarantors: Regardless of lender mandates, this group should always seek independent legal and financial advice.
Trust beneficiary guarantors: This is often necessary when the borrowing entity is a trust.
Companies as guarantors: For a trust with a company as trustee, the company must often guarantee the loan independently.
The independent legal advice certificate reassures the lender that the guarantor has willingly signed the guarantee document, fully informed by legal advice on its implications and their responsibilities.
A guarantor carries significant obligations and potential risks, notably assuming the borrower’s responsibilities if they fail to meet the loan’s terms. Therefore, it’s crucial for guarantors to be thoroughly informed about their liabilities.
Aylward Game Solicitors offer independent legal advice for a reasonable fee starting from $770, providing you with the clarity and confidence needed to understand your responsibilities as a guarantor.
For those needing Independent Legal Advice on a Loan, we invite you to contact our office to schedule an appointment.