Personal Guaranty clauses typically contain a sentence similar to this, “Guarantor agrees that Lessor can renew, extend, or otherwise modify the terms of the Agreement and Guarantor will be bound by such changes.”  This language allows the Lessor to change the lease terms due to a re-write or deferment (i.e. Lessee become delinquent or requests a modification of the contract) and the personal guarantor(s) would still be bound & liable.

Equipment lease agreements typically contain a sentence similar to this, “YOU HAVE NO RIGHT TO SELL, TRANSFER, ASSIGN, SUBLEASE, OR ENCUMBER THE EQUIPMENT OR THIS AGREEMENT.” This sentence protects the lessor’s asset/collateral and maintains their credit underwriting guidelines, should you ever want to transfer the collateral or lease to another party. It is possible to assign the lease, but the new party (assignee) will need to go through the credit review process with the lessor and get approval. Once the assignee has been approved, the existing lessee (assignor) should find out if the personal guarantors, if any, will be released. The lessor in most instances will not release the existing personal guarantors, unless the assignee’s credit profile is substantially stronger than assignors.