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Release of Personal Guarantee Template
Clearly document when a personal guarantee ends so the lender, borrower, and guarantor all understand the scope and effective date of the release.
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Release of Personal Guarantee Template
This Release of Personal Guarantee (“Agreement”) is made as of [Date of Agreement].
1. Parties
Lender (Beneficiary of Guarantee):
Full Legal Name: [Lender Full Legal Name]
Business Name (if applicable): [Lender Business Name]
Address: [Lender Address]
Phone: [Lender Phone Number]
Email: [Lender Email Address]
Borrower (Primary Obligated Party):
Full Legal Name: [Borrower Full Legal Name]
Business Name (if applicable): [Borrower Business Name]
Address: [Borrower Address]
Phone: [Borrower Phone Number]
Email: [Borrower Email Address]
Guarantor (Person Being Released):
Full Legal Name: [Guarantor Full Legal Name]
Business Name (if applicable): [Guarantor Business Name]
Address: [Guarantor Address]
Phone: [Guarantor Phone Number]
Email: [Guarantor Email Address]
2. Background
2.1 Primary Agreement
The Borrower and Lender are parties to the following agreement (the “Primary Agreement”):
Type of Primary Agreement: [Loan Agreement / Lease Agreement / Credit Agreement / Other]
Title or Reference: [Title or Reference of Primary Agreement]
Date of Primary Agreement: [Date]
2.2 Personal Guarantee
The Guarantor previously entered into a personal guarantee in favor of the Lender relating to the Borrower’s obligations under the Primary Agreement (the “Personal Guarantee”):
Title or Reference of Personal Guarantee: [Title or Reference]
Date of Personal Guarantee: [Date]
2.3 Outstanding Obligations
As of [Reference Date], the obligations of the Borrower under the Primary Agreement that are covered by the Personal Guarantee include:
General Description of Obligations: [General Description of Guaranteed Obligations]
3. Release of Personal Guarantee
3.1 Scope of Release
The Lender hereby releases the Guarantor from the Personal Guarantee as follows (select one and complete):
☐ Full Release: The Personal Guarantee is fully and permanently released. The Guarantor is released from all obligations and liabilities, present and future, arising under or in connection with the Personal Guarantee.
☐ Partial / Limited Release: The Personal Guarantee is released only to the following extent:
Description of Released Portion: [Description of limits, such as maximum amount, specific obligations, or time period being released]
Any part of the Personal Guarantee not expressly released in this Section remains in effect, subject to the terms of this Agreement and applicable law.
3.2 Effective Date
The release described in this Agreement is effective as of:
Effective Date of Release: [Effective Date]
4. Effect on Borrower and Primary Agreement
4.1 Borrower’s Continuing Obligations
Except as expressly stated in this Agreement:
The Borrower’s obligations under the Primary Agreement remain in full force and effect.
This Agreement does not forgive, reduce, or change the Borrower’s obligations, unless the Lender and Borrower separately agree in writing.
4.2 Other Guarantees or Security
Any other personal guarantees, corporate guarantees, security interests, mortgages, or collateral given in connection with the Primary Agreement remain in force unless those parties and the Lender have separately agreed to release or modify them.
5. Lender’s Release of Guarantor
5.1 Release
To the extent provided in Section 3, the Lender releases and forever discharges the Guarantor from the obligations under the Personal Guarantee that are covered by this Agreement.
5.2 No Further Claims Against Guarantor
For the released portion of the Personal Guarantee, the Lender agrees not to start or continue legal or collection actions against the Guarantor based on the released obligations, except to enforce this Agreement itself.
6. Guarantor’s Acknowledgment
The Guarantor acknowledges and agrees that:
The Guarantor has been released only to the extent stated in this Agreement.
The Guarantor has reviewed or had the opportunity to review the Primary Agreement and the Personal Guarantee.
The Guarantor understands that the Borrower remains responsible for obligations under the Primary Agreement, unless separately modified.
7. Mutual Confirmations
The parties confirm that:
They have the legal capacity and authority to enter into this Agreement.
They understand the terms of this Agreement.
They are entering into this Agreement voluntarily.
8. Governing Law
This Agreement is governed by the laws of [State/Province, Country], unless the parties specify a different governing law here: [Alternative Governing Law, if any].
9. Entire Agreement and Amendments
9.1 Entire Agreement
This Agreement sets out the entire understanding between the Lender and the Guarantor regarding the release of the Personal Guarantee identified in Section 2.
9.2 Amendments
Any change to this Agreement must be in writing and signed by the Lender and the Guarantor.
9.3 No Waiver
If any party does not enforce a right under this Agreement at a particular time, that does not waive the right to enforce it later.
10. Notices
Any notices under this Agreement must be in writing and sent to the addresses or email addresses for the parties listed in Section 1, unless a party provides updated contact details in writing.
Permitted notice methods include:
Personal delivery
Mail or courier
Email, if the recipient regularly uses email and agrees to receive notices electronically
Signatures
Lender:
Signature: _______________________________
Printed Name: [Lender Full Legal Name or Authorized Signer]
Title (if business): [Title]
Date: [Date]
Guarantor:
Signature: _______________________________
Printed Name: [Guarantor Full Legal Name]
Title (if business): [Title]
Date: [Date]
Borrower (acknowledging this release):
Signature: _______________________________
Printed Name: [Borrower Full Legal Name or Authorized Signer]
Title (if business): [Title]
Date: [Date]
Witnesses (If Used)
Witness 1:
Signature: _______________________________
Printed Name: [Witness 1 Full Legal Name]
Address: [Witness 1 Address]
Date: [Date]
Witness 2 (if required):
Signature: _______________________________
Printed Name: [Witness 2 Full Legal Name]
Address: [Witness 2 Address]
Date: [Date]
Notary Acknowledgment (If Required)
State/Province of [State/Province]
County of [County]
On [Date], before me, [Notary Full Name], a Notary Public, personally appeared [Lender Full Legal Name or Authorized Signer], [Guarantor Full Legal Name], and [Borrower Full Legal Name or Authorized Signer], who proved their identities on the basis of satisfactory evidence and acknowledged that they executed this Release of Personal Guarantee for the purposes stated in it.
Notary Public Signature: _______________________________
Notary Public Printed Name: [Notary Full Name]
My Commission Expires: [Date]
Notary Seal: ☐
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Learn more about
Release of Personal Guarantee Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
RELEASE OF PERSONAL GUARANTEE TEMPLATE FAQ
What is a Release of Personal Guarantee?
A Release of Personal Guarantee is a written document where a lender formally releases an individual (the guarantor) from a personal guarantee they gave for someone else’s loan, lease, or other obligation. It identifies the original guarantee and states that the guarantor is no longer responsible for some or all of the guaranteed obligations.
When should I use this Release of Personal Guarantee template?
Use this template when a personal guarantee is no longer needed — for example, because the loan has been repaid, the borrower is being refinanced, collateral has improved, or the lender agrees to remove a guarantor. It creates a clear record that the guarantor’s obligations are ending or being reduced.
What should be included in a Release of Personal Guarantee?
A clear release usually includes: the names and contact details of the lender, borrower, and guarantor; a description of the original primary agreement and personal guarantee; the outstanding obligations; exactly what is being released (full or partial); the effective date; and signatures of the lender and guarantor, with the borrower often acknowledging.
Does a release of personal guarantee affect the borrower’s obligations?
Normally, no. A release of personal guarantee typically affects only the guarantor’s liability. Unless the document says otherwise, the borrower’s obligations under the primary loan or lease agreement continue unchanged and the lender can still enforce those obligations directly against the borrower.
Can the lender release only part of the guarantor’s obligations?
Yes. A release can be full (all obligations under the guarantee) or partial (for example, up to a certain amount, or for a specific period). This template allows you to state whether the release is full or limited and to describe any limits or conditions.
Can AI Lawyer help me customize this Release of Personal Guarantee?
Yes. AI Lawyer can help you adapt this Release of Personal Guarantee with your party names, original guarantee details, release scope, and effective date so you have a clean, professional document ready for signature.
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