Financial Support Agreement Regarding Guaranty of Obligation Template

This financial support agreement regarding guaranty of obligation template has 5 pages and is a MS Word file type listed under our legal agreements documents.

Sample of our financial support agreement regarding guaranty of obligation template:

FINANCIAL SUPPORT AGREEMENT REGARDING GUARANTY OF OBLIGATION This Financial Support Agreement Regarding Guaranty of Obligation (the "Agreement") is effective [DATE], BETWEEN: [GUARANTY ISSUER NAME] (the "Guarantor"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the "Receiver"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] recitals Guarantor has issued or will continue to maintain the guaranty attached as Exhibit A hereto (the "Guaranty") following the transfer of Guarantor's controlling interest in Receiver. Receiver agrees to pay Guarantor a fee pursuant to the following terms and conditions. GUARANTY FEE Guaranty Fee shall be [%] per [ANNUM/MONTH], calculated [MONTHLY/DAILY], charged on the month-end outstanding balance of the Guaranty, as evidenced by the amortization schedule attached hereto as Exhibit B and will be payable [SEMI-ANNUALLY] on [JUNE 30th] and [DECEMBER 31st] of each calendar year. If the Guaranty is outstanding for less than a full calendar month, Guaranty Fee shall be computed based on the outstanding balance of the Guaranty on each calendar day of such month that the Guaranty shall remain in effect. ADJUSTMENT TO GUARANTY FEE The Guaranty Fee set forth above was determined based on the assumption that Receiver's credit rating post-Separation would be equivalent to the average of the ratings of [BBB/Baa2 and BBB-/Baa3]. Guarantor shall have a one-time right to increase, effective prospectively, the Guaranty Fee (the "Adjusted Guaranty Fee") if either one of the following events occurs: Standard & Poor's issues a credit rating for Receiver of [BB+] or less; or Moody's issues a credit rating for Receiver of [Ba1] or less. Such right may be exercised at any time by written notice to Receiver. If either of the events described above occurs, the Adjusted Guaranty Fee shall be determined by Guarantor by averaging the rates quoted to Guarantor by three nationally recognized banking institutions for a credit equivalent to the published credit ratings of Receiver. The Adjusted Guaranty Fee shall become the Guaranty Fee payable under this Agreement from and after the date on which Guarantor provides Receiver written notice of the Adjusted Guaranty Fee. PAYMENT OF FEE Guaranty Fee is due not later than [NUMBER] business days following the end of each [SEMI-ANNUAL] payment period as defined in Section 1 and shall be delivered by [PAYMENT METHOD, e.g. bank wire] or such other bank account as shall be provided to Receiver by Guarantor in writing at least 5 business days prior to the payment due date. In the event the Guaranty is terminated, replaced by Receiver or expires prior to the end of the [SEMI-ANNUAL] payment period, Guaranty Fee will be due not later than [NUMBER] business days following the termination of all obligations of Guarantor under the Guaranty. LATE PAYMENT FEE