BILL REQ. #: H-1457.1
| State of Washington | 62nd Legislature | 2011 Regular Session |
READ FIRST TIME 02/10/11.
AN ACT Relating to procedures for written business contracts; and adding a new chapter to Title 19 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The definitions in this section apply
throughout this chapter unless the context clearly requires otherwise.
(1) "Authorized business representative" means a natural person
authorized to conduct business on behalf of a business entity,
including a limited liability company, corporation, or nonprofit
corporation, registered in Washington or another state.
(2) "Business payment contract containing a personal guarantee"
means a written agreement between two or more parties in which at least
one party is an authorized business representative who, as
consideration for the agreement, promises to guarantee the debt of a
business entity.
NEW SECTION. Sec. 2 Any business payment contract containing a
personal guarantee must contain the following for each authorized
business representative who is a party to the agreement and who is
making a personal guarantee:
(1) A separate signature line, directly following and on the same
page as any other signature line or lines that the authorized business
representative must sign to signal his or her acceptance of the
agreement;
(2) The signature line must be preceded directly on the same page
by the phrase, "DISCLOSURE: By signing this contract you, the
undersigned, are agreeing to PERSONALLY GUARANTEE payment according to
the terms of this contract." The phrase must be written in bold,
fourteen-point or larger font in clearly visible ink.
NEW SECTION. Sec. 3 The personal guarantee of an authorized
business representative in a business payment contract containing a
personal guarantee found not to meet the requirements of section 2 of
this act is against the public policy of this state and is to that
extent unenforceable.
NEW SECTION. Sec. 4 This chapter applies to business payment
contracts containing a personal guarantee executed on or after January
1, 2012.
NEW SECTION. Sec. 5 Sections 1 through 4 of this act constitute
a new chapter in Title