Loan Guaranty Agreement - Virginia

Loan Guaranty Agreement is a legal document that was released by the Virginia Department of Small Business and Supplier Diversity - a government authority operating within Virginia.

FAQ

Q: What is a Loan Guaranty Agreement?
A: A Loan Guaranty Agreement is a legal contract where one party agrees to be responsible for the repayment of a loan if the borrower defaults.

Q: Who can be a guarantor in a Loan Guaranty Agreement?
A: Any individual or entity with good credit and sufficient financial resources can be a guarantor in a Loan Guaranty Agreement.

Q: What are the responsibilities of a guarantor in a Loan Guaranty Agreement?
A: The guarantor is responsible for repaying the loan if the borrower fails to do so. The guarantor may also be required to pay any associated fees or interest.

Q: Is a Loan Guaranty Agreement legally binding?
A: Yes, a Loan Guaranty Agreement is a legally binding contract that can be enforced in a court of law.

Q: Can a guarantor be released from a Loan Guaranty Agreement?
A: In some cases, a guarantor may be able to be released from a Loan Guaranty Agreement if there is a specific provision in the agreement or if the lender agrees to release the guarantor.

Q: What happens if the borrower defaults on the loan in a Loan Guaranty Agreement?
A: If the borrower defaults on the loan, the lender can pursue the guarantor for repayment. The guarantor may be responsible for the full amount of the loan plus any associated fees and interest.