A surety agreement can be used to secure the repayment of a loan, the repayment of an additional loan for an already derreared loan, payments due under a lease agreement, or the payment of future balances on credit card purchases. In the case of a collateral arrangement, the collateral may be ”absolute” (you make the commitment if the borrower cannot for any reason) or ”conditional” (your liability as a ”guarantor” depends on a particular event in addition to the borrower`s default) and may be limited to one transaction or a certain amount or cover commitments for an indefinite period. Other names of this document: Warranty Contract Form, Personal Warranty Agreement This document can be used by any of the three interested parties who wish to put their warranty agreement on paper. A creditor may use this secured agreement to outline the terms of a line of credit granted to a debtor with security, or the debtor or guarantor may use it to offer a written agreement to a creditor. Comment: This section could also be formulated in such a way that the guarantee remains in full force and effect until full payment of all obligations under the contract, such as.B. ”[i]n which the guarantee is a permanent guarantee and shall remain in full force and effect until full payment of the guaranteed commitments”. A guarantee agreement is an agreement in which a loan or debt of one person is ”secured” by someone else. .