Facilitator Guide

Guaranties

Facilitator Guide

Guaranties

Topic: Commercial Lending
Duration: 1 hr
Format: Remote or in person

What’s covered

Upstream vs. downstream guaranties
Guarantor(s) liability
Collection guaranties
Payment guaranties
Performance guaranties
Continuing guaranties
Limited guaranties
Bad boy guaranties
Guaranty Agreements
Subrogation
Setoff rights

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/guaranties/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Guaranties

A discussion of guaranties, including the key provisions in a guaranty agreement and the different types of guaranties that can be given, such as payment vs. performance guaranties and down-stream vs. upstream guaranties.
Exercise
PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

If a borrower is a parent holding company, who will be the guarantors? What if the borrower is an operating subsidiary?
What are some of the different types of guaranties? Do any of these guaranties frequently overlap?
What type of obligations does a guarantor typically guaranty in a lending deal?
What do setoff rights allow a lender to do?
What are some of the ways that the lender makes sure the guaranty is iron-clad?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.