Release of Personal Guarantee Template: Liability Notice

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.