Legal Parent Child Bond Contract

LEGAL PARENT CHILD BOND CONTRACT

This Parental Guarantee and Bond Contract (the Agreement) is made and entered into on this day: by and between Parent Name: of Parent Address: (hereinafter "Guarantor"), and Child Name: of Child Address: (hereinafter "Principal").

RECITALS

WHEREAS, Principal intends to incur or has incurred certain obligations described as: (the Obligations);

WHEREAS, Guarantor is willing to guarantee and secure full and punctual performance and payment of the Obligations and to be bound as surety and indemnitor to the obligee identified in any underlying instrument or bond in the amount set forth below;

WHEREAS, the parties desire that Guarantor’s obligations hereunder shall constitute a continuing and primary guarantee for the benefit of any obligee who relies on this Agreement.

NOW, THEREFORE

For good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 "Bond Amount" means the penal sum of specified to secure the Obligations.

1.2 "Default" means any failure by Principal to perform or pay when due any Obligation after applicable notice and cure periods have expired.

2. GUARANTEE

2.1 Unconditional Guarantee. Guarantor unconditionally and irrevocably guarantees to any obligee the full and punctual payment and performance of the Obligations up to the Bond Amount. This guarantee is a continuing obligation and shall remain in effect until the Obligations have been indefeasibly satisfied.

2.2 Primary Liability. Guarantor’s liability is primary and independent of Principal’s obligations. An obligee may proceed directly against Guarantor without first proceeding against Principal or exhausting any remedies against Principal or any collateral.

3. PENAL SUM; PAYMENT

3.1 Penal Sum. The penal sum secured by this Agreement is (the Penal Sum). Guarantor acknowledges that the Penal Sum may be declared due and payable by an obligee upon Principal’s Default in accordance with this Agreement.

3.2 Payment on Demand. Upon written demand by an obligee following Default, Guarantor shall pay the demanded amount up to the Penal Sum within days of receipt of such demand unless otherwise agreed in writing by the obligee.

4. CONDITIONS OF LIABILITY; CURE

4.1 Notice and Cure. Prior to enforcing payment under this Agreement, an obligee shall deliver to Guarantor written notice of Default and a reasonable opportunity to cure. The standard cure period shall be days after receipt of notice, except that no cure period shall be required if doing so would materially prejudice the obligee's rights.

4.2 Waiver of Defenses. Guarantor waives any defense based on the invalidity, unenforceability, or discharge of the Obligations so long as the obligee has acted in good faith and without material prejudice to Guarantor.

5. INDEMNITY; EXPENSES

5.1 Indemnity. Guarantor shall indemnify, defend and hold harmless any obligee from and against all losses, damages, liabilities, costs and expenses (including reasonable attorneys' fees and court costs) incurred by reason of Principal’s Default or the enforcement of this Agreement.

5.2 Interest; Rate. Amounts payable by Guarantor hereunder shall bear interest at the lesser of the maximum rate permitted by applicable law or per annum, from the date of demand until paid.

6. SECURITY

7. NOTICES

Notices shall be effective when delivered in accordance with this section by hand, nationally recognized overnight courier, or certified mail to the addresses provided above or to such other address as a party may designate in writing.

8. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder. Guarantor represents that Guarantor’s obligations hereunder are undertaken voluntarily and that Guarantor has had the opportunity to obtain independent advice regarding this Agreement.

Child is a minor (under 18). If checked, Guarantor confirms authority as parent or legal guardian to bind the minor and accepts all obligations herein.

9. GOVERNING LAW; ENFORCEMENT

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The parties consent to the exclusive jurisdiction of the courts located in that State for any action arising out of or relating to this Agreement.

10. ENTIRE AGREEMENT; SEVERABILITY; AMENDMENT

10.1 Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

10.2 Severability. If any provision of this Agreement is held invalid or unenforceable, such invalidity or unenforceability shall not affect the remaining provisions, which shall continue in full force and effect.

10.3 Amendment; Waiver. No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom enforcement is sought. A waiver of any breach shall not constitute a waiver of any subsequent breach.

11. COUNTERPARTS; EXECUTION

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be effective to bind the signing party.

12. ATTORNEYS' FEES AND COSTS

If any action is necessary to enforce this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, costs and expenses from the non-prevailing party in addition to any other relief awarded.

ACKNOWLEDGMENT

Guarantor acknowledges that this instrument creates a legally binding obligation. Guarantor confirms receipt of a copy of this Agreement and that Guarantor has read and understands its terms.

Sign Now