Terms of Guarantee
1. Purchaser - Landlord, owner, or owner's agent.
2. Guarantee covers damages caused by covered tenant for loss rent and/or damages to property/space leased. Damages are covered up to 1st month's rent amount. Guarantee stays in effect for the full lease term, regardless of the length of the lease, once the contract value is paid.
3. Premium - Sixty five percent (65%) of the 1st month rent amount.
Ex. Rent - $1000
Premium - $650 ($1000 x .65)
Monthly premium = $54.17
4. Payments - amortized monthly over 12 months or paid in full at execution of lease. Landlord, owner, or owner's agent sets rent rate to cover cost of guarantee premium. Premium must be paid in full by termination date of lease except if tenant defaults on rent payments. Half(1/2) of premium must be paid for guarantor to pay for rent defaults.
5. Qualifications - Landlord, owner, or owner's agent qualify tenants using their normal business practices.
6. Claims - accepted only at lease termination or after tenant default. Claims are accepted for the space the covered tenant occupies on the signed lease and any space amended and occupied on lease but not occupied simultaneously. If tenant occupies more than one space throughout the lease term, claims are paid towards the space occupied at termination of lease and the previous vacant space assigned at signing of lease. If previous space is rented out to a new tenant, then the space does not qualify for payment.
Claims are paid within 30 days after filing.
7. Tenant default - full guarantee is paid upon tenant default of rent payments. Only after six months of payments from landlord will the guarantor pay for tenant default.
8. Voids - In the event of property damages defined in lease, outstanding premium balances voids payments of claims equal to outstanding balance.
9. Cancellations - cancellations of guaranty forfeits all payments of guarantee. Cancellations can be made anytime with written notice or non payment of two(2) consecutive months without a claim for remittance.