Judgment Against the Guarantor Clause Samples
The "Judgment Against the Guarantor" clause establishes the lender's right to obtain a court judgment directly against the guarantor if the borrower defaults on their obligations. In practice, this means that if the borrower fails to repay a loan or meet contractual terms, the lender can pursue legal action to recover the owed amounts from the guarantor without first exhausting remedies against the borrower. This clause ensures that the lender has a clear and enforceable path to recover losses, thereby reducing the risk of non-payment and strengthening the guarantor's accountability.
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Judgment Against the Guarantor. In case of any judicial or other proceedings to enforce the rights of the Holders, judgment may be rendered against a Guarantor in favour of the Holders or in favour of the Trustee or Trustees, as trustee(s) for the Holders, for any amount which may remain due in respect of the Notes and the interest thereon.