Personal Guarantee
This guarantee is given on 7 November 2026 by:
Tomas Reyes, of 58 Oak Avenue, Auckland 1010, New Zealand ("the Guarantor"),
to:
Pacific Trade Finance Ltd, of 12 Queen Street, Auckland 1010, New Zealand ("the Creditor").
1. Background
The Creditor has agreed to lend money to, or supply goods or services on credit to, Reyes Building Supplies Ltd, company number 1234567, of 7 Dock Road, Auckland ("the Debtor"), under the following agreement (the "Main Agreement"):
the loan agreement dated 14 January 2027 between the Creditor and the Debtor for NZD 150,000, and any account on which the Creditor supplies goods to the Debtor on credit
The Creditor would not do so unless the Guarantor gives this guarantee. The Guarantor has a personal interest in the Debtor and gives this guarantee for good value, which the Guarantor accepts as received.
2. What the Guarantor promises
2.1 The Guarantor promises the Creditor that the Debtor will pay on time every amount that it owes the Creditor under the Main Agreement, and any agreement that replaces, extends or changes it (the "Guaranteed Obligations"), and will carry out its other obligations under them.
2.2 If the Debtor does not pay an amount when it is due, the Guarantor will pay that amount to the Creditor on demand, as a primary obligation and not only as a surety. The Creditor does not need to claim the amount from the Debtor, or from anyone else who has given security, or start any case against any of them, before it makes a demand on the Guarantor.
2.3 If a Guaranteed Obligation is not valid, or cannot be enforced against the Debtor, for any reason, the Guarantor is liable as if it were a principal debtor, and will keep the Creditor free from the loss that results, so that the Creditor is in the position it would have been in if the obligation had been valid.
3. The most the Guarantor can be asked to pay
3.1 The Guarantor's liability under this guarantee is limited to NZD 150,000 (the "Maximum Amount").
3.2 Interest and costs
3.3 The Maximum Amount applies to the total of all demands, together. A payment by the Guarantor reduces the amount remaining under it, but a payment by the Debtor does not, unless it reduces the Guaranteed Obligations below the Maximum Amount.
4. Demand and payment
4.1 The Creditor makes a demand by written notice to the Guarantor that states the amount due and the way it is made up. A statement from the Creditor's records of the amount owing is evidence of it, unless it is shown to be wrong.
4.2 The Guarantor will pay the amount demanded within 7 days after the demand is delivered, in the currency of the debt, in full, and without any deduction, set-off or counterclaim. If the law requires the Guarantor to deduct tax, the Guarantor will pay an increased sum so that the Creditor receives the amount it would have received without the deduction.
4.3 A sum not paid when due under this guarantee carries interest at the rate that applies to the Guaranteed Obligations, or, if there is none, at 4% a year above the base rate of the central bank of the country of the currency, from the due date until payment.
4.4 The Creditor may make more than one demand.
5. A continuing guarantee
5.1 This is a continuing guarantee. It remains in force until all the Guaranteed Obligations have been paid in full and the Creditor has no further commitment to the Debtor, and it is not ended by a payment on account, a settlement of account, or by the Debtor's debt being at times nil.
5.2 This guarantee is in addition to, and not instead of, any other guarantee or security that the Creditor holds now or later for the Guaranteed Obligations. The Creditor need not enforce or use any of them first.
5.3 This guarantee does not cover new credit that the Creditor gives after 31 December 2030, but it continues for every amount that arose before that date.
5.4 The Guarantor also gives the following security for its obligations under this guarantee:
a first mortgage over the Guarantor's property at 58 Oak Avenue, by a separate document
6. Defences that the Guarantor gives up
The Guarantor's liability is not reduced, ended or affected by anything that would, apart from this section, discharge a guarantor, including:
- a change to the Main Agreement, or an extension of time, a new loan or a larger credit limit, a waiver or a release of the Debtor or of any other person;
- the Creditor giving up, losing, or not enforcing any security or any other guarantee, or not perfecting it;
- the Debtor's insolvency, winding up, reorganisation or change of name or ownership, or the death or incapacity of any person;
- the Creditor not making a claim or demand against the Debtor, or any delay in doing so;
- any invalidity, illegality or lack of power in the Debtor, in the Main Agreement or in the Creditor's rights; or
- anything else that, without this section, would make the Guarantor less than fully liable.
This section applies only as far as the law allows. It does not take away any defence that the Guarantor has because of the Creditor's own fraud, dishonesty or serious breach, or because the Creditor has been paid in full.
7. Payments that are later returned
If the Creditor receives a payment from the Debtor, or from the Guarantor, and has to give it back, for example because the Debtor becomes insolvent, the Guarantor's liability is restored as if the payment had not been made.
8. Costs
The Guarantor will pay the Creditor's reasonable costs of enforcing this guarantee, including legal fees, and of any demand, subject to section 3.2.
9. Rights against the Debtor
Until the Creditor has been paid in full, the Guarantor will not claim from the Debtor, or take any security from it, in respect of a payment that the Guarantor has made under this guarantee, and will not compete with the Creditor for the Debtor's assets. If the Guarantor receives anything from the Debtor, it holds it for the Creditor. After the Creditor has been paid in full, the Guarantor takes over the Creditor's rights against the Debtor, to the extent of what the Guarantor paid.
10. Revoking the guarantee for future debts
The Guarantor may stop this guarantee from covering new loans, credit or supplies by giving the Creditor written notice. The notice takes effect 30 days after the Creditor receives it. After that, the guarantee continues for all amounts that the Debtor already owes, and for amounts that the Creditor has committed to lend or supply before the notice took effect, with interest and costs on them, but not for new commitments. The Guarantor is still liable for those amounts until they are paid in full, and the Maximum Amount continues to apply.
11. The Guarantor's confirmations
The Guarantor confirms that:
- the Guarantor has read the Main Agreement, or has had the chance to, and understands the extent of the Debtor's obligations;
- the Guarantor has the power to give this guarantee, is acting freely, and has not been put under pressure by the Creditor or anyone for whom the Creditor is responsible;
- the Guarantor understands that, if the Debtor does not pay, the Guarantor may have to pay up to the Maximum Amount from its own money and assets, including, where the law allows, its home;
- the Guarantor understands that the Creditor has no duty to tell the Guarantor about the Debtor's affairs, but will give the Guarantor on request a statement of what is owed; and
- Independent advice
12. General
- Notices must be in writing, and may be sent by email or delivered to the address at the top of this guarantee, or to another address that a party has told the other of in writing.
- The Creditor may transfer its rights under this guarantee with the Guaranteed Obligations, and the Guarantor will be bound by it in favour of the person to whom it does. The Guarantor may not transfer its obligations. This guarantee binds the Guarantor's heirs and estate.
- If any part of this guarantee cannot be enforced, the rest remains in effect.
- A delay or failure by the Creditor to use a right is not a waiver of it.
- This guarantee may be changed only in writing signed by the Guarantor and the Creditor. It may be signed in separate copies and electronically.
13. Governing law and disputes
This guarantee is governed by the laws of New Zealand.
The place for deciding any dispute under this guarantee is Auckland. How disputes are decided
Signatures
The Guarantor: Tomas Reyes
Signature: ______________
Date: ______________
Witness name: ______________
Witness address: ______________
Witness signature: ______________
For the Creditor: Pacific Trade Finance Ltd
Name and title: ______________
Signature: ______________
Date: ______________
Witness name: ______________
Witness signature: ______________