SURETYSHIP AGREEMENT SAMPLE
____________________________________________ ("Debtor") whose address is
_____________________________________________________________________
AND
_________________________________________________ ("Surety"), whose address is
_______________________________________________________________________,
jointly and severally bind themselves to pay $ ____ amount to
________________________________________________ ("Creditor") whose address is
_______________________________________________________________________,
due under contract
________________________________________________________________________
________________________________________________________________________
[describe contract]
1. The condition of this obligation is such, that if above bonded Debtor perform the
covenants, conditions and agreements in said contract, then this obligation shall
become null and void, otherwise it shall be and remain in full force.
2. Neither the Contract nor this Agreement shall be assigned, changed or modified
without the written consent of Surety.
3. Surety is responsible to pay amount due under Contract including loss, damages and
interests not exceeding above-mentioned amount.
4. Payments due under this Agreement shall be paid upon written notice of Creditor
supported by evidence of Debtors default.
5. The Surety shall pay amount due no later than 30 days after the giving notice of
default.
6. The Creditor shall exercise normal prudent business practices and shall apply
reasonable efforts to mitigate possible losses under the Contract. Surety's obligations
shall be released and void upon the failure of Creditor to properly perfect its security
interests in collateral and to maintain the validity of security interest in the collateral.
7. Upon and to the extent the Surety has made payment under this Agreement, the
Surety shall be subrogated to all of the Creditor's rights against the Debtor and
collateral and any other person liable to Creditor as a result of the default by Debtor.
The execution by the Creditor of a release or waiver of the right to collect liabilities
shall equally release the Surety from any further obligation under this Agreement.
8. The Creditor shall upon and to the extent of payment execute all documents
required to assign the Contract rights and collateral to the Surety.
9. This suretyship agreement shall be construed and enforced under the laws of
Lithuanian Republic.
Dated as of this ________ day of _____________[month], __________ [year]
Debtor ______________________________
Surety _______________________________
Notes:
Examples of the documents are of recommendatory nature and the law firm Baublys ir Partneriai
bears no responsibility for their use. |
