1. Definitions
For the purposes of this Agreement:
- Borrower: The individual or entity who has borrowed funds from one or more Lenders through the Platform and is responsible for repaying the loan as outlined in the Loan Agreement.
- Lender: The person or entity that provides funds to the Borrower through the Platform.
- Loan: The amount of funds borrowed by the Borrower through the Platform from the Lender(s), including principal and interest, and any associated fees or charges.
- Loan Agreement: The agreement entered into between the Borrower and the Lender(s), outlining the terms of the loan, including repayment schedule, interest rates, and any other conditions.
- Guarantor: The individual or entity that agrees to guarantee the repayment of the loan if the Borrower defaults on their repayment obligations under the Loan Agreement.
2. Guarantor's Obligations
- 2.1 Guarantee of Payment: The Guarantor agrees to unconditionally guarantee the full repayment of the Loan, including principal, interest, fees, and any other amounts owed by the Borrower under the Loan Agreement, in the event the Borrower fails to meet their repayment obligations. This guarantee applies to the entire loan amount, including any outstanding interest or penalties.
- 2.2 Substitution of Guarantor: The Guarantor agrees that this guarantee is a continuing one and remains in full effect for the duration of the Loan. The Guarantor further acknowledges that they cannot substitute themselves for the Borrower, and that they are responsible for repayment only if the Borrower defaults.
- 2.3 Payment Upon Default: If the Borrower defaults on the loan (as defined in the Loan Agreement), the Guarantor agrees to pay the full outstanding balance of the Loan on demand by the Platform or the Lender. This includes the entire principal, accrued interest, fees, and any other charges related to the Loan.
- 2.4 No Obligation for Other Loans: The Guarantor's obligations under this Agreement apply only to the specific Loan mentioned in this Agreement. The Guarantor is not liable for any other loans or obligations incurred by the Borrower outside of this Agreement.
- 2.5 Notification of Default: The Guarantor will be notified promptly by the Platform or Lender in the event of the Borrower's default. However, the Guarantor's obligations under this Agreement are not contingent on such notice and will remain in full effect.
3. Platform's Responsibilities
- 3.1 Facilitation of Loan: The Platform will facilitate the loan process by providing the necessary tools and infrastructure to match the Borrower with the Lender(s), and ensure that the Loan Agreement, including this Guarantor Agreement, is executed properly.
- 3.2 Loan Servicing: The Platform will administer and collect payments from the Borrower, and if the Borrower defaults, will enforce the terms of the Loan Agreement and this Guarantor Agreement.
4. Guarantor's Representations and Warranties
The Guarantor represents and warrants to the Platform and Lender(s) that:
- 4.1 Capacity: The Guarantor has full legal capacity and authority to enter into this Agreement and to guarantee the Loan.
- 4.2 No Other Guaranties: The Guarantor is not bound by any other agreements that conflict with the terms of this Agreement.
- 4.3 No Existing Default: The Guarantor is not currently in default under any other loan or financial obligation and is financially capable of fulfilling their obligations under this guarantee, should they be called upon.
5. Fees and Charges
- 5.1 Platform Fees: The Guarantor acknowledges that the Platform may charge fees for the services provided under this Agreement. These fees are outlined on the Platform and may include, but are not limited to, loan facilitation fees, servicing fees, and other administrative costs.
- 5.2 Collection Fees: If the Borrower defaults and the Platform seeks to recover the debt from the Guarantor, the Guarantor agrees to bear any reasonable costs associated with the collection process, including legal fees and court costs, if applicable.
6. Termination of the Guarantee
- 6.1 Completion of Loan Repayment: The Guarantor's obligations under this Agreement will terminate once the Borrower has repaid the full amount of the Loan, including principal, interest, and all fees.
- 6.2 Early Termination by Guarantor: The Guarantor cannot terminate their obligations under this Agreement prior to the Borrower's repayment of the full loan amount unless mutually agreed upon by the Platform, the Borrower, and the Lender(s).
- 6.3 Release of Guarantor: In the event that the Borrower repays the Loan or if the loan is otherwise settled, the Guarantor's obligations will be considered satisfied and the Guarantor will be released from further liability.
7. Indemnification and Liability
- 7.1 Indemnification: The Guarantor agrees to indemnify and hold harmless the Platform and the Lender(s) from any claims, damages, losses, or liabilities arising from the Borrower's default or from the enforcement of this Agreement.
- 7.2 No Limitation of Liability: The Guarantor acknowledges that their liability is not limited in any way and is independent of the Borrower's obligations. In the event of the Borrower's default, the Guarantor will be fully responsible for the repayment of the Loan.
8. Governing Law and Dispute Resolution
- 8.1 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the federal republic of Nigeria.
- 8.2 Dispute Resolution: Any disputes arising under or in connection with this Agreement shall be resolved through arbitration in Lagos, and both parties agree to submit to the exclusive jurisdiction of the courts in that location.
9. Miscellaneous
- 9.1 Entire Agreement: This Agreement constitutes the entire understanding between the Platform, the Guarantor, and the Lender(s) regarding the guarantee of the Loan.
- 9.2 Amendments: The Platform may amend this Agreement at any time, and any changes will be communicated to the Guarantor. The Guarantor's continued participation in the Platform after such changes constitutes acceptance of the updated terms.