<PAGE>

                                                                   EXHIBIT 10.6





                              GUARANTEE AGREEMENT

                           R&G FINANCIAL CORPORATION

                                      AND

                     R&G ACQUISITION HOLDINGS CORPORATION

                           Dated as of April 10, 2002


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                               TABLE OF CONTENTS
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                                   ARTICLE I
                         DEFINITIONS AND INTERPRETATION

  SECTION 1.1  Definitions and Interpretation ....................  1

                                   ARTICLE II
               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

SECTION 2.1  Powers and Duties of the Guarantee Trustee ..........  4
SECTION 2.2  Certain Rights of the Guarantee Trustee .............  5
SECTION 2.3  Not Responsible for Recitals or Issuance of Guarantee  7
SECTION 2.4  Events of Default; Waiver ...........................  7
SECTION 2.5  Events of Default; Notice ...........................  8

                                  ARTICLE III
                             THE GUARANTEE TRUSTEE

SECTION 3.1  The Guarantee Trustee; Eligibility ..................  8
SECTION 3.2  Appointment, Removal and Resignation of the
             Guarantee Trustee .................................... 9

                                   ARTICLE IV
                                   GUARANTEE

SECTION 4.1  Guarantee ...........................................  9
SECTION 4.2  Waiver of Notice and Demand .........................  10
SECTION 4.3  Obligations Not Affected ............................  10
SECTION 4.4  Rights of Holders ...................................  11
SECTION 4.5  Guarantee of Payment ................................  11
SECTION 4.6  Subrogation .........................................  11
SECTION 4.7  Independent Obligations .............................  12
SECTION 4.8  Enforcement .........................................  12

                                   ARTICLE V
                   LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 5.1  Limitation of Transactions ..........................  12
SECTION 5.2  Ranking .............................................  13

                                   ARTICLE VI
                                  TERMINATION

SECTION 6.1  Termination .........................................  13
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                                  ARTICLE VII
                                INDEMNIFICATION

SECTION 7.1  Exculpation .........................................  14
SECTION 7.2  Indemnification .....................................  14
SECTION 7.3  Compensation; Reimbursement of Expenses .............  15

                                  ARTICLE VIII
                                 MISCELLANEOUS

SECTION 8.1  Successors and Assigns ..............................  15
SECTION 8.2  Amendments ..........................................  16
SECTION 8.3  Notices .............................................  16
SECTION 8.4  Benefit .............................................  17
SECTION 8.5  Governing Law .......................................  17
SECTION 8.6  Counterparts ........................................  17
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                                       ii
<PAGE>

                              GUARANTEE AGREEMENT

                  This GUARANTEE AGREEMENT (the "Guarantee"), dated as of April
10, 2002, is executed and delivered by R&G Financial Corporation, a Puerto
Rican chartered financial holding company ("R&G Financial"), R&G Acquisition
Holdings Corporation, a Florida corporation ("Holdings," each a "Guarantor" and
collectively, the "Guarantors") and Wilmington Trust Company, a Delaware
banking corporation, as trustee (the "Guarantee Trustee"), for the benefit of
the Holders (as defined herein) from time to time of the Capital Securities (as
defined herein) of R&G Capital Trust I, a Delaware statutory business trust
(the "Issuer").

                  WHEREAS, pursuant to an Amended and Restated Declaration of
Trust (the "Declaration"), dated as of April 10, 2002, among the trustees named
therein of the Issuer, R&G Acquisition Holdings Corporation, as sponsor, and
the Holders from time to time of undivided beneficial interests in the assets
of the Issuer, the Issuer is issuing on the date hereof securities, having an
aggregate liquidation amount of up to $25,000,000, designated the Floating Rate
MMCapS(SM) (the "Capital Securities"); and

                  WHEREAS, as incentive for the Holders to purchase the Capital
Securities, the Guarantors desire irrevocably and unconditionally to agree, to
the extent set forth in this Guarantee, to pay to the Holders of Capital
Securities the Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein.

                  NOW, THEREFORE, in consideration of the purchase by each
Holder of the Capital Securities, which purchase the Guarantors hereby agree
shall benefit the Guarantors, the Guarantors execute and deliver this Guarantee
for the benefit of the Holders.

                                   ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1.  Definitions and Interpretation.

In this Guarantee, unless the context otherwise requires:

                  (a) capitalized terms used in this Guarantee but not defined
         in the preamble above have the respective meanings assigned to them in
         this Section 1.1;

                  (b) a term defined anywhere in this Guarantee has the same
         meaning throughout;

                  (c) all references to "the Guarantee" or "this Guarantee" are
         to this Guarantee as modified, supplemented or amended from time to
         time;

                  (d) all references in this Guarantee to Articles and Sections
         are to Articles and Sections of this Guarantee, unless otherwise
         specified;

                  (e) terms defined in the Declaration as at the date of
         execution of this Guarantee have the same meanings when used in this
         Guarantee, unless otherwise defined in this Guarantee or unless the
         context otherwise requires; and


                                       1
<PAGE>

                  (f) a reference to the singular includes the plural and vice
         versa.

                  "Beneficiaries" means any Person to whom the Issuer is or
hereafter becomes indebted or liable.

                  "Corporate Trust Office" means the office of the Guarantee
Trustee at which the corporate trust business of the Guarantee Trustee shall,
at any particular time, be principally administered, which office at the date
of execution of this Guarantee is located at Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001.

                  "Covered Person" means any Holder of Capital Securities.

                  "Debentures" means the junior subordinated debentures of R&G
Acquisition Holdings Corporation, designated the Floating Rate Junior
Subordinated Debt Securities due 2032, held by the Institutional Trustee (as
defined in the Declaration) of the Issuer.

                  "Event of Default" has the meaning set forth in Section 2.4.

                  "Guarantee Payments" means the following payments or
distributions, without duplication, with respect to the Capital Securities, to
the extent not paid or made by the Issuer: (i) any accrued and unpaid
Distributions (as defined in the Declaration) which are required to be paid on
such Capital Securities to the extent the Issuer has funds available in the
Property Account (as defined in the Declaration) therefor at such time, (ii)
the Redemption Price (as defined in the Indenture) to the extent the Issuer has
funds available in the Property Account therefor at such time, with respect to
any Capital Securities called for redemption by the Issuer, (iii) the Special
Redemption Price (as defined in the Indenture) to the extent the Issuer has
funds available in the Property Account therefor at such time, with respect to
Capital Securities called for redemption upon the occurrence of a Special Event
(as defined in the Indenture), and (iv) upon a voluntary or involuntary
liquidation, dissolution, winding-up or termination of the Issuer (other than
in connection with the distribution of Debentures to the Holders of the Capital
Securities in exchange therefor as provided in the Declaration), the lesser of
(a) the aggregate of the liquidation amount and all accrued and unpaid
Distributions on the Capital Securities to the date of payment, to the extent
the Issuer has funds available in the Property Account therefor at such time,
and (b) the amount of assets of the Issuer remaining available for distribution
to Holders in liquidation of the Issuer after satisfaction of liabilities to
creditors of the Issuer as required by applicable law (in either case, the
"Liquidation Distribution").

                  "Guarantee Trustee" means Wilmington Trust Company, until a
Successor Guarantee Trustee has been appointed and has accepted such
appointment pursuant to the terms of this Guarantee and thereafter means each
such Successor Guarantee Trustee.

                  "Holder" means any holder, as registered on the books and
records of the Issuer, of any Capital Securities; provided, however, that, in
determining whether the holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder,
"Holder" shall not include the Guarantors or any Affiliate of the Guarantors.

                  "Indemnified Person" means the Guarantee Trustee (including in
its individual capacity), any Affiliate of the Guarantee Trustee, or any
officers, directors, shareholders,


                                       2
<PAGE>

members, partners, employees, representatives, nominees, custodians or agents
of the Guarantee Trustee.

                  "Indenture" means the Indenture, dated as of April 10, 2002,
between Holdings and Wilmington Trust Company, not in its individual capacity
but solely as trustee, and any indenture supplemental thereto pursuant to which
the Debentures are to be issued to the Institutional Trustee of the Issuer.

                  "Liquidation Distribution" has the meaning set forth in the
definition of "Guarantee Payments" herein.

                  "Majority in liquidation amount of the Capital Securities"
means Holder(s) of outstanding Capital Securities, voting together as a class,
but separately from the holders of Common Securities, of more than 50% of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid Distributions to,
but excluding, the date upon which the voting percentages are determined) of
all Capital Securities then outstanding.

                  "Obligations" means any costs, expenses or liabilities (but
not including liabilities related to taxes) of the Issuer, other than
obligations of the Issuer to pay to holders of any Trust Securities the amounts
due such holders pursuant to the terms of the Trust Securities.

                  "Officer's Certificate" means, with respect to any Person, a
certificate signed by one Authorized Officer of such Person. Any Officer's
Certificate delivered with respect to compliance with a condition or covenant
provided for in this Guarantee shall include:

                  (a) a statement that each officer signing the Officer's
         Certificate has read the covenant or condition and the definitions
         relating thereto;

                  (b) a brief statement of the nature and scope of the
         examination or investigation undertaken by each officer in rendering
         the Officer's Certificate;

                  (c) a statement that each such officer has made such
         examination or investigation as, in such officer's opinion, is
         necessary to enable such officer to express an informed opinion as to
         whether or not such covenant or condition has been complied with; and

                  (d) a statement as to whether, in the opinion of each such
         officer, such condition or covenant has been complied with.

                  "Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

                  "Responsible Officer" means, with respect to the Guarantee
Trustee, any officer within the Corporate Trust Office of the Guarantee Trustee
with direct responsibility for the administration of any matters relating to
this Guarantee, including any vice president, any assistant vice president, any
secretary, any assistant secretary, the treasurer, any assistant


                                       3
<PAGE>

treasurer, any trust officer or other officer of the Corporate Trust Office of
the Guarantee Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of that officer's knowledge of and familiarity with the
particular subject.

                  "Successor Guarantee Trustee" means a successor Guarantee
Trustee possessing the qualifications to act as Guarantee Trustee under Section
3.1.

                  "Trust Securities" means the Common Securities and the Capital
Securities.

                                   ARTICLE II
               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

SECTION 2.1.  Powers and Duties of the Guarantee Trustee.

                  (a) This Guarantee shall be held by the Guarantee Trustee for
         the benefit of the Holders of the Capital Securities, and the
         Guarantee Trustee shall not transfer this Guarantee to any Person
         except a Holder of Capital Securities exercising his or her rights
         pursuant to Section 4.4(b) or to a Successor Guarantee Trustee on
         acceptance by such Successor Guarantee Trustee of its appointment to
         act as Successor Guarantee Trustee. The right, title and interest of
         the Guarantee Trustee shall automatically vest in any Successor
         Guarantee Trustee, and such vesting and cessation of title shall be
         effective whether or not conveyancing documents have been executed and
         delivered pursuant to the appointment of such Successor Guarantee
         Trustee.

                  (b) If an Event of Default actually known to a Responsible
         Officer of the Guarantee Trustee has occurred and is continuing, the
         Guarantee Trustee shall enforce this Guarantee for the benefit of the
         Holders of the Capital Securities.

                  (c) The Guarantee Trustee, before the occurrence of any Event
         of Default and after the curing or waiving of all Events of Default
         that may have occurred, shall undertake to perform only such duties as
         are specifically set forth in this Guarantee, and no implied covenants
         shall be read into this Guarantee against the Guarantee Trustee. In
         case an Event of Default has occurred (that has not been cured or
         waived pursuant to Section 2.4(b)) and is actually known to a
         Responsible Officer of the Guarantee Trustee, the Guarantee Trustee
         shall exercise such of the rights and powers vested in it by this
         Guarantee, and use the same degree of care and skill in its exercise
         thereof, as a prudent person would exercise or use under the
         circumstances in the conduct of his or her own affairs.

                  (d) No provision of this Guarantee shall be construed to
         relieve the Guarantee Trustee from liability for its own negligent
         action, its own negligent failure to act, or its own willful
         misconduct, except that:

                           (i) prior to the occurrence of any Event of Default
                  and after the curing or waiving of all Events of Default that
                  may have occurred:


                                       4
<PAGE>

                                    (A) the duties and obligations of the
                           Guarantee Trustee shall be determined solely by the
                           express provisions of this Guarantee, and the
                           Guarantee Trustee shall not be liable except for the
                           performance of such duties and obligations as are
                           specifically set forth in this Guarantee, and no
                           implied covenants or obligations shall be read into
                           this Guarantee against the Guarantee Trustee; and

                                    (B) in the absence of bad faith on the part
                           of the Guarantee Trustee, the Guarantee Trustee may
                           conclusively rely, as to the truth of the statements
                           and the correctness of the opinions expressed
                           therein, upon any certificates or opinions furnished
                           to the Guarantee Trustee and conforming to the
                           requirements of this Guarantee; but in the case of
                           any such certificates or opinions furnished to the
                           Guarantee Trustee, the Guarantee Trustee shall be
                           under a duty to examine the same to determine
                           whether or not on their face they conform to the
                           requirements of this Guarantee;

                           (ii) the Guarantee Trustee shall not be liable for
                  any error of judgment made in good faith by a Responsible
                  Officer of the Guarantee Trustee, unless it shall be proved
                  that such Responsible Officer of the Guarantee Trustee or the
                  Guarantee Trustee was negligent in ascertaining the pertinent
                  facts upon which such judgment was made;

                           (iii) the Guarantee Trustee shall not be liable with
                  respect to any action taken or omitted to be taken by it in
                  good faith in accordance with the written direction of the
                  Holders of not less than a Majority in liquidation amount of
                  the Capital Securities relating to the time, method and place
                  of conducting any proceeding for any remedy available to the
                  Guarantee Trustee, or exercising any trust or power conferred
                  upon the Guarantee Trustee under this Guarantee; and

                           (iv) no provision of this Guarantee shall require
                  the Guarantee Trustee to expend or risk its own funds or
                  otherwise incur personal financial liability in the
                  performance of any of its duties or in the exercise of any of
                  its rights or powers, if the Guarantee Trustee shall have
                  reasonable grounds for believing that the repayment of such
                  funds is not reasonably assured to it under the terms of this
                  Guarantee, or security and indemnity, reasonably satisfactory
                  to the Guarantee Trustee, against such risk or liability is
                  not reasonably assured to it.

SECTION 2.2.  Certain Rights of the Guarantee Trustee.

                  (a) Subject to the provisions of Section 2.1:

                           (i) The Guarantee Trustee may conclusively rely, and
                  shall be fully protected in acting or refraining from acting
                  upon, any resolution, certificate, statement, instrument,
                  opinion, report, notice, request, direction, consent, order,
                  bond, debenture, note, other evidence of indebtedness or
                  other paper or document believed by it to be genuine and to
                  have been signed, sent or presented by the proper party or
                  parties.


                                       5
<PAGE>

                           (ii) Any direction or act of a Guarantor
                  contemplated by this Guarantee shall be sufficiently
                  evidenced by an Officer's Certificate.

                           (iii) Whenever, in the administration of this
                  Guarantee, the Guarantee Trustee shall deem it desirable that
                  a matter be proved or established before taking, suffering or
                  omitting any action hereunder, the Guarantee Trustee (unless
                  other evidence is herein specifically prescribed) may, in the
                  absence of bad faith on its part, request and conclusively
                  rely upon an Officer's Certificate of the Guarantor which,
                  upon receipt of such request, shall be promptly delivered by
                  the Guarantor.

                           (iv) The Guarantee Trustee shall have no duty to see
                  to any recording, filing or registration of any instrument or
                  other writing (or any rerecording, refiling or reregistration
                  thereof).

                           (v) The Guarantee Trustee may consult with counsel
                  of its selection, and the advice or opinion of such counsel
                  with respect to legal matters shall be full and complete
                  authorization and protection in respect of any action taken,
                  suffered or omitted by it hereunder in good faith and in
                  accordance with such advice or opinion. Such counsel may be
                  counsel to a Guarantor or any of its Affiliates and may
                  include any of its employees. The Guarantee Trustee shall
                  have the right at any time to seek instructions concerning
                  the administration of this Guarantee from any court of
                  competent jurisdiction.

                           (vi) The Guarantee Trustee shall be under no
                  obligation to exercise any of the rights or powers vested in
                  it by this Guarantee at the request or direction of any
                  Holder, unless such Holder shall have provided to the
                  Guarantee Trustee such security and indemnity, reasonably
                  satisfactory to the Guarantee Trustee, against the costs,
                  expenses (including attorneys' fees and expenses and the
                  expenses of the Guarantee Trustee's agents, nominees or
                  custodians) and liabilities that might be incurred by it in
                  complying with such request or direction, including such
                  reasonable advances as may be requested by the Guarantee
                  Trustee; provided, however, that nothing contained in this
                  Section 2.2(a)(vi) shall be taken to relieve the Guarantee
                  Trustee, upon the occurrence of an Event of Default, of its
                  obligation to exercise the rights and powers vested in it by
                  this Guarantee.

                           (vii) The Guarantee Trustee shall not be bound to
                  make any investigation into the facts or matters stated in
                  any resolution, certificate, statement, instrument, opinion,
                  report, notice, request, direction, consent, order, bond,
                  debenture, note, other evidence of indebtedness or other
                  paper or document, but the Guarantee Trustee, in its
                  discretion, may make such further inquiry or investigation
                  into such facts or matters as it may see fit.

                           (viii) The Guarantee Trustee may execute any of the
                  trusts or powers hereunder or perform any duties hereunder
                  either directly or by or through agents, nominees, custodians
                  or attorneys, and the Guarantee Trustee shall not be


                                       6
<PAGE>

                  responsible for any misconduct or negligence on the part of
                  any agent or attorney appointed with due care by it
                  hereunder.

                           (ix) Any action taken by the Guarantee Trustee or
                  its agents hereunder shall bind the Holders of the Capital
                  Securities, and the signature of the Guarantee Trustee or its
                  agents alone shall be sufficient and effective to perform any
                  such action. No third party shall be required to inquire as
                  to the authority of the Guarantee Trustee to so act or as to
                  its compliance with any of the terms and provisions of this
                  Guarantee, both of which shall be conclusively evidenced by
                  the Guarantee Trustee's or its agent's taking such action.

                           (x) Whenever in the administration of this Guarantee
                  the Guarantee Trustee shall deem it desirable to receive
                  instructions with respect to enforcing any remedy or right or
                  taking any other action hereunder, the Guarantee Trustee (A)
                  may request instructions from the Holders of a Majority in
                  liquidation amount of the Capital Securities, (B) may refrain
                  from enforcing such remedy or right or taking such other
                  action until such instructions are received and (C) shall be
                  protected in conclusively relying on or acting in accordance
                  with such instructions.

                           (xi) The Guarantee Trustee shall not be liable for
                  any action taken, suffered, or omitted to be taken by it in
                  good faith and reasonably believed by it to be authorized or
                  within the discretion or rights or powers conferred upon it
                  by this Guarantee.

                  (b) No provision of this Guarantee shall be deemed to impose
         any duty or obligation on the Guarantee Trustee to perform any act or
         acts or exercise any right, power, duty or obligation conferred or
         imposed on it, in any jurisdiction in which it shall be illegal or in
         which the Guarantee Trustee shall be unqualified or incompetent in
         accordance with applicable law to perform any such act or acts or to
         exercise any such right, power, duty or obligation. No permissive
         power or authority available to the Guarantee Trustee shall be
         construed to be a duty.

SECTION 2.3.  Not Responsible for Recitals or Issuance of Guarantee.

                  The recitals contained in this Guarantee shall be taken as the
statements of the Guarantors, and the Guarantee Trustee does not assume any
responsibility for their correctness. The Guarantee Trustee makes no
representation as to the validity or sufficiency of this Guarantee.

SECTION 2.4.  Events of Default; Waiver.

                  (a) An Event of Default under this Guarantee will occur upon
         the failure of a Guarantor to perform any of its payment or other
         obligations hereunder.

                  (b) The Holders of a Majority in liquidation amount of the
         Capital Securities may, voting or consenting as a class, on behalf of
         the Holders of all of the Capital Securities, waive any past Event of
         Default and its consequences. Upon such waiver, any such Event of

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<PAGE>
Default shall cease to exist, and shall be deemed to have been cured, for every
purpose of this Guarantee, but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon.

SECTION 2.5.      Events of Default; Notice.

                  (a)      The Guarantee Trustee shall, within 90 days after
         the occurrence of an Event of Default, transmit by mail, first class
         postage prepaid, to the Holders of the Capital Securities, notices of
         all Events of Default actually known to a Responsible Officer of the
         Guarantee Trustee, unless such defaults have been cured before the
         giving of such notice, provided, however, that the Guarantee Trustee
         shall be protected in withholding such notice if and so long as a
         Responsible Officer of the Guarantee Trustee in good faith determines
         that the withholding of such notice is in the interests of the Holders
         of the Capital Securities.

                  (b)      The Guarantee Trustee shall not be charged with
         knowledge of any Event of Default unless the Guarantee Trustee shall
         have received written notice thereof from a Guarantor or a Holder of
         the Capital Securities, or a Responsible Officer of the Guarantee
         Trustee charged with the administration of this Guarantee shall have
         actual knowledge thereof.

                                  ARTICLE III
                             THE GUARANTEE TRUSTEE

SECTION 3.1.      The Guarantee Trustee; Eligibility.

                  (a)      There shall at all times be a Guarantee Trustee
         which shall:

                           (i)      not be an Affiliate of either of the
                  Guarantors; and

                           (ii)     be a corporation organized and doing
                  business under the laws of the United States of America or
                  any State or Territory thereof or of the District of
                  Columbia, or Person authorized under such laws to exercise
                  corporate trust powers, having a combined capital and surplus
                  of at least 50 million U.S. dollars ($50,000,000), and
                  subject to supervision or examination by Federal, State,
                  Territorial or District of Columbia authority. If such
                  corporation publishes reports of condition at least annually,
                  pursuant to law or to the requirements of the supervising or
                  examining authority referred to above, then, for the purposes
                  of this Section 3.1(a)(ii), the combined capital and surplus
                  of such corporation shall be deemed to be its combined
                  capital and surplus as set forth in its most recent report of
                  condition so published.

                  (b)      If at any time the Guarantee Trustee shall cease to
         be eligible to so act under Section 3.1(a), the Guarantee Trustee
         shall immediately resign in the manner and with the effect set forth
         in Section 3.2(c).


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<PAGE>
                  (c)      If the Guarantee Trustee has or shall acquire any
         "conflicting interest" within the meaning of Section 310(b) of the
         Trust Indenture Act, the Guarantee Trustee shall either eliminate such
         interest or resign to the extent and in the manner provided by, and
         subject to, this Guarantee.

SECTION 3.2.      Appointment, Removal and Resignation of the Guarantee
Trustee.

                  (a)      Subject to Section 3.2(b), the Guarantee Trustee may
         be appointed or removed without cause at any time by a Guarantor
         except during an Event of Default.

                  (b)      The Guarantee Trustee shall not be removed in
         accordance with Section 3.2(a) until a Successor Guarantee Trustee has
         been appointed and has accepted such appointment by written instrument
         executed by such Successor Guarantee Trustee and delivered to the
         Guarantors.

                  (c)      The Guarantee Trustee appointed to office shall hold
         office until a Successor Guarantee Trustee shall have been appointed
         or until its removal or resignation. The Guarantee Trustee may resign
         from office (without need for prior or subsequent accounting) by an
         instrument in writing executed by the Guarantee Trustee and delivered
         to the Guarantors, which resignation shall not take effect until a
         Successor Guarantee Trustee has been appointed and has accepted such
         appointment by an instrument in writing executed by such Successor
         Guarantee Trustee and delivered to the Guarantors and the resigning
         Guarantee Trustee.

                  (d)      If no Successor Guarantee Trustee shall have been
         appointed and accepted appointment as provided in this Section 3.2
         within 60 days after delivery of an instrument of removal or
         resignation, the Guarantee Trustee resigning or being removed may
         petition any court of competent jurisdiction for appointment of a
         Successor Guarantee Trustee. Such court may thereupon, after
         prescribing such notice, if any, as it may deem proper, appoint a
         Successor Guarantee Trustee.

                  (e)      No Guarantee Trustee shall be liable for the acts or
         omissions to act of any Successor Guarantee Trustee.

                  (f)      Upon termination of this Guarantee or removal or
         resignation of the Guarantee Trustee pursuant to this Section 3.2, the
         Guarantor shall pay to the Guarantee Trustee all amounts owing to the
         Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of
         such termination, removal or resignation.

                                   ARTICLE IV
                                   GUARANTEE

SECTION 4.1.      Guarantee.

         (a)      The Guarantors irrevocably and unconditionally agree to pay
in full to the Holders the Guarantee Payments (without duplication of amounts
theretofore paid by the Issuer), as and when due, regardless of any defense
(except as defense of payment by the Issuer), right of set-off or counterclaim
that the Issuer may have or assert. The Guarantors' obligation to make a


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<PAGE>
Guarantee Payment may be satisfied by direct payment of the required amounts by
a Guarantor to the Holders or by causing the Issuer to pay such amounts to the
Holders.

         (b)      The Guarantors hereby also agree to assume any and all
Obligations of the Issuer and in the event any such Obligation is not so
assumed, subject to the terms and conditions hereof, the Guarantors hereby
irrevocably and unconditionally guarantee to each Beneficiary the full payment,
when and as due, of any and all Obligations to such Beneficiaries. This
Guarantee is intended to be for the Beneficiaries who have received notice
hereof.

SECTION 4.2.      Waiver of Notice and Demand.

         The Guarantors hereby waive notice of acceptance of this Guarantee and
of any liability to which it applies or may apply, presentment, demand for
payment, any right to require a proceeding first against the Issuer or any
other Person before proceeding against a Guarantor, protest, notice of
nonpayment, notice of dishonor, notice of redemption and all other notices and
demands.

SECTION 4.3.      Obligations Not Affected.

         The obligations, covenants, agreements and duties of the Guarantors
under this Guarantee shall in no way be affected or impaired by reason of the
happening from time to time of any of the following:

                  (a)      the release or waiver, by operation of law or
         otherwise, of the performance or observance by the Issuer of any
         express or implied agreement, covenant, term or condition relating to
         the Capital Securities to be performed or observed by the Issuer;

                  (b)      the extension of time for the payment by the Issuer
         of all or any portion of the Distributions, Redemption Price, Special
         Redemption Price, Liquidation Distribution or any other sums payable
         under the terms of the Capital Securities or the extension of time for
         the performance of any other obligation under, arising out of, or in
         connection with, the Capital Securities (other than an extension of
         time for the payment of the Distributions, Redemption Price, Special
         Redemption Price, Liquidation Distribution or other sums payable that
         results from the extension of any interest payment period on the
         Debentures or any extension of the maturity date of the Debentures
         permitted by the Indenture);

                  (c)      any failure, omission, delay or lack of diligence on
         the part of the Holders to enforce, assert or exercise any right,
         privilege, power or remedy conferred on the Holders pursuant to the
         terms of the Capital Securities, or any action on the part of the
         Issuer granting indulgence or extension of any kind;

                  (d)      the voluntary or involuntary liquidation,
         dissolution, sale of any collateral, receivership, insolvency,
         bankruptcy, assignment for the benefit of creditors, reorganization,
         arrangement, composition or readjustment of debt of, or other similar
         proceedings affecting, the Issuer or any of the assets of the Issuer;

                  (e)      any invalidity of, or defect or deficiency in, the
         Capital Securities;


                                       10
<PAGE>
                  (f)      the settlement or compromise of any obligation
         guaranteed hereby or hereby incurred; or

                  (g)      any other circumstance whatsoever that might
         otherwise constitute a legal or equitable discharge or defense of a
         guarantor, it being the intent of this Section 4.3 that the
         obligations of the Guarantors hereunder shall be absolute and
         unconditional under any and all circumstances.

                  There shall be no obligation of the Holders to give notice
to, or obtain consent of, the Guarantors with respect to the happening of any
of the foregoing.

SECTION 4.4.      Rights of Holders.

                  (a)      The Holders of a Majority in liquidation amount of
         the Capital Securities have the right to direct the time, method and
         place of conducting any proceeding for any remedy available to the
         Guarantee Trustee in respect of this Guarantee or to direct the
         exercise of any trust or power conferred upon the Guarantee Trustee
         under this Guarantee; provided, however, that (subject to Sections 2.1
         and 2.2) the Guarantee Trustee shall have the right to decline to
         follow any such direction if the Guarantee Trustee shall determine
         that the actions so directed would be unjustly prejudicial to the
         Holders not taking part in such direction or if the Guarantee Trustee
         being advised by counsel determines that the action or proceeding so
         directed may not lawfully be taken or if the Guarantee Trustee in good
         faith by its board of directors or trustees, executive committee or a
         trust committee of directors or trustees and/or Responsible Officers
         shall determine that the action or proceeding so directed would
         involve the Guarantee Trustee in personal liability.

                  (b)      Any Holder of Capital Securities may institute a
         legal proceeding directly against the Guarantors to enforce the
         Guarantee Trustee's rights under this Guarantee, without first
         instituting a legal proceeding against the Issuer, the Guarantee
         Trustee or any other Person. The Guarantors waive any right or remedy
         to require that any such action be brought first against the Issuer,
         the Guarantee Trustee or any other Person before so proceeding
         directly against the Guarantors.

SECTION 4.5.      Guarantee of Payment.

                  This Guarantee creates a guarantee of payment and not of
collection.

SECTION 4.6.      Subrogation.

                  The Guarantors shall be subrogated to all (if any) rights of
the Holders of Capital Securities against the Issuer in respect of any amounts
paid to such Holders by a Guarantor under this Guarantee; provided, however,
that the Guarantors shall not (except to the extent required by applicable
provisions of law) be entitled to enforce or exercise any right that it may
acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee, if, after
giving effect to any such payment, any amounts are due and unpaid under this
Guarantee. If any amount shall be paid to a Guarantor in violation of


                                       11
<PAGE>
the preceding sentence, the Guarantors agree to hold such amount in trust for
the Holders and to pay over such amount to the Holders.

SECTION 4.7.      Independent Obligations.

                  The Guarantors acknowledge that their obligations hereunder
are independent of the obligations of the Issuer with respect to the Capital
Securities and that the Guarantors shall be liable as principal and as debtor
hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 4.3 hereof.

SECTION 4.8.      Enforcement.

                  A Beneficiary may enforce the Obligations of the Guarantors
contained in Section 4.1(b) directly against the Guarantors, and the Guarantors
waive any right or remedy to require that any action be brought against the
Issuer or any other person or entity before proceeding against the Guarantors.

                  The Guarantors shall be subrogated to all rights (if any) of
any Beneficiary against the Issuer in respect of any amounts paid to the
Beneficiaries by the Guarantors under this Guarantee; provided, however, that
the Guarantors shall not (except to the extent required by applicable
provisions of law) be entitled to enforce or exercise any rights that it may
acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee, if, after
giving effect to such payment, any amounts are due and unpaid under this
Guarantee.

                                   ARTICLE V
                   LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 5.1.      Limitation of Transactions.

                  So long as any Capital Securities remain outstanding, if (a)
there shall have occurred and be continuing an Event of Default or (b) the
Holdings shall have selected an Extension Period as provided in the Declaration
and such period, or any extension thereof, shall have commenced and be
continuing, then the Guarantors may not (x) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Guarantors' capital stock or (y) make any payment
of principal of or interest or premium, if any, on or repay, repurchase or
redeem any debt securities of the Guarantors that rank pari passu in all
respects with or junior in interest to the Debentures (other than (i) payments
under this Guarantee, (ii) repurchases, redemptions or other acquisitions of
shares of capital stock of the Guarantors (A) in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
one or more employees, officers, directors, or consultants, (B) in connection
with a dividend reinvestment or stockholder stock purchase plan or (C) in
connection with the issuance of capital stock of the Guarantors (or securities
convertible into or exercisable for such capital stock), as consideration in an
acquisition transaction entered into prior to the occurrence of the Event of
Default or the applicable Extension Period, (iii) as a result of any exchange
or conversion of any class or series of the Guarantors' capital stock (or any
capital stock of a subsidiary of the Guarantors) for any


                                       12
<PAGE>
class or series of the Guarantors' capital stock or of any class or series of
the Guarantors' indebtedness for any class or series of the Guarantors' capital
stock, (iv) the purchase of fractional interests in shares of the Guarantors'
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged, (v) any declaration of a
dividend in connection with any stockholder's rights plan, or the issuance of
rights, stock or other property under any stockholder's rights plan, or the
redemption or repurchase of rights pursuant thereto, or (vi) any dividend in
the form of stock, warrants, options or other rights where the dividend stock
or the stock issuable upon exercise of such warrants, options or other rights
is the same stock as that on which the dividend is being paid or ranks pari
passu with or junior to such stock).

SECTION 5.2.      Ranking.

                  This Guarantee will constitute an unsecured obligation of the
Guarantors and will rank subordinate and junior in right of payment to all
present and future Senior Indebtedness (as defined in the Indenture) of the
Guarantors. By their acceptance thereof, each Holder of Capital Securities
agrees to the foregoing provisions of this Guarantee and the other terms set
forth herein.

                  The right of a Guarantor to participate in any distribution
of assets of any of its subsidiaries upon any such subsidiary's liquidation or
reorganization or otherwise is subject to the prior claims of creditors of that
subsidiary, except to the extent a Guarantor may itself be recognized as a
creditor of that subsidiary. Accordingly, the Guarantors' obligations under
this Guarantee will be effectively subordinated to all existing and future
liabilities of the Guarantors' subsidiaries, and claimants should look only to
the assets of the Guarantors for payments thereunder. This Guarantee does not
limit the incurrence or issuance of other secured or unsecured debt of the
Guarantors, including Senior Indebtedness of the Guarantors, under any
indenture or agreement that the Guarantors may enter into in the future or
otherwise.

                                   ARTICLE VI
                                  TERMINATION

SECTION 6.1.      Termination.

                  This Guarantee shall terminate as to the Capital Securities
(i) upon full payment of the Redemption Price or the Special Redemption Price,
as the case may be, of all Capital Securities then outstanding, (ii) upon the
distribution of all of the Debentures to the Holders of all of the Capital
Securities or (iii) upon full payment of the amounts payable in accordance with
the Declaration upon dissolution of the Issuer. This Guarantee will continue to
be effective or will be reinstated, as the case may be, if at any time any
Holder of Capital Securities must restore payment of any sums paid under the
Capital Securities or under this Guarantee.


                                       13
<PAGE>
                                  ARTICLE VII
                                INDEMNIFICATION

SECTION 7.1.      Exculpation.

                  (a)      No Indemnified Person shall be liable, responsible
         or accountable in damages or otherwise to the Guarantors or any
         Covered Person for any loss, damage or claim incurred by reason of any
         act or omission of such Indemnified Person in good faith in accordance
         with this Guarantee and in a manner that such Indemnified Person
         reasonably believed to be within the scope of the authority conferred
         on such Indemnified Person by this Guarantee or by law, except that an
         Indemnified Person shall be liable for any such loss, damage or claim
         incurred by reason of such Indemnified Person's negligence or willful
         misconduct with respect to such acts or omissions.

                  (b)      An Indemnified Person shall be fully protected in
         relying in good faith upon the records of the Issuer or the Guarantors
         and upon such information, opinions, reports or statements presented
         to the Issuer or the Guarantors by any Person as to matters the
         Indemnified Person reasonably believes are within such other Person's
         professional or expert competence and who, if selected by such
         Indemnified Person, has been selected with reasonable care by such
         Indemnified Person, including information, opinions, reports or
         statements as to the value and amount of the assets, liabilities,
         profits, losses, or any other facts pertinent to the existence and
         amount of assets from which Distributions to Holders of Capital
         Securities might properly be paid.

SECTION 7.2.      Indemnification.

         (a)      The Guarantors agree to indemnify each Indemnified Person
for, and to hold each Indemnified Person harmless against, any and all loss,
liability, damage, claim or expense incurred without negligence or willful
misconduct on the part of the Indemnified Person, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including but not limited to the costs and expenses (including
reasonable legal fees and expenses) of the Indemnified Person defending itself
against, or investigating, any claim or liability in connection with the
exercise or performance of any of the Indemnified Person's powers or duties
hereunder. The obligation to indemnify as set forth in this Section 7.2 shall
survive the resignation or removal of the Guarantee Trustee and the termination
of this Guarantee.

         (b)      Promptly after receipt by an Indemnified Person under this
Section 7.2 of notice of the commencement of any action, such Indemnified
Person will, if a claim in respect thereof is to be made against the Guarantors
under this Section 7.2, notify the Guarantors in writing of the commencement
thereof; but the failure so to notify the Guarantors (i) will not relieve the
Guarantors from liability under paragraph (a) above unless and to the extent
that the Guarantors did not otherwise learn of such action and such failure
results in the forfeiture by the Guarantors of substantial rights and defenses
and (ii) will not, in any event, relieve the Guarantors from any obligations to
any Indemnified Person other than the indemnification obligation provided in
paragraph (a) above. The Guarantors shall be entitled to appoint counsel of the
Guarantors' choice at the Guarantors' expense to represent the Indemnified
Person in any


                                       14
<PAGE>
action for which indemnification is sought (in which case the Guarantors shall
not thereafter be responsible for the fees and expenses of any separate counsel
retained by the Indemnified Person or Persons except as set forth below);
provided, however, that such counsel shall be satisfactory to the Indemnified
Person. Notwithstanding the Guarantors' election to appoint counsel to
represent the Indemnified Person in any action, the Indemnified Person shall
have the right to employ separate counsel (including local counsel), and the
Guarantors shall bear the reasonable fees, costs and expenses of such separate
counsel, if (i) the use of counsel chosen by the Guarantors to represent the
Indemnified Person would present such counsel with a conflict of interest, (ii)
the actual or potential defendants in, or targets of, any such action include
both the Indemnified Person and the Guarantors and the Indemnified Person shall
have reasonably concluded that there may be legal defenses available to it
and/or other Indemnified Persons which are different from or additional to
those available to the Guarantors, (iii) the Guarantors shall not have employed
counsel satisfactory to the Indemnified Person to represent the Indemnified
Person within a reasonable time after notice of the institution of such action
or (iv) the Guarantors shall authorize the Indemnified Person to employ
separate counsel at the expense of the Guarantors. The Guarantors will not,
without the prior written consent of the Indemnified Persons, settle or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
Indemnified Persons are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each Indemnified Person from all liability arising out of such claim,
action, suit or proceeding.

SECTION 7.3.      Compensation; Reimbursement of Expenses.

                  The Guarantors agree:

                  (a)      to pay to the Guarantee Trustee from time to time
such compensation for all services rendered by it hereunder as the parties
shall agree to from time to time (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust); and

                  (b)      except as otherwise expressly provided herein, to
reimburse the Guarantee Trustee upon request for all reasonable expenses,
disbursements and advances incurred or made by it in accordance with any
provision of this Guarantee (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or willful
misconduct.

                  The provisions of this Section 7.3 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this
Guarantee.

                                  ARTICLE VIII
                                 MISCELLANEOUS

SECTION 8.1.      Successors and Assigns.

                  All guarantees and agreements contained in this Guarantee
shall bind the successors, assigns, receivers, trustees and representatives of
the Guarantors and shall inure to


                                       15
<PAGE>
the benefit of the Holders of the Capital Securities then outstanding. Except
in connection with any merger or consolidation of a Guarantor with or into
another entity or any sale, transfer or lease of a Guarantor's assets to
another entity, in each case to the extent permitted under the Indenture, the
Guarantors may not assign its rights or delegate its obligations under this
Guarantee without the prior approval of the Holders of not less than a Majority
in liquidation amount of the Capital Securities.

SECTION 8.2.      Amendments.

                  Except with respect to any changes that do not adversely
affect the rights of Holders of the Capital Securities in any material respect
(in which case no consent of Holders will be required), this Guarantee may be
amended only with the prior approval of the Holders of not less than a Majority
in liquidation amount of the Capital Securities. The provisions of the
Declaration with respect to amendments thereof shall apply equally with respect
to amendments of the Guarantee.

SECTION 8.3.      Notices.

                  All notices provided for in this Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

                  (a)      If given to the Guarantee Trustee, at the Guarantee
         Trustee's mailing address set forth below (or such other address as
         the Guarantee Trustee may give notice of to the Holders of the Capital
         Securities):

                           Wilmington Trust Company
                           Rodney Square North
                           1100 North Market Street
                           Wilmington, Delaware 19890-0001
                           Attention:  Corporate Trust Administration
                           Telecopy:   302-651-8882
                           Telephone:  302-651-1000

                  (b)      If given to the Guarantors, at the Guarantors'
         respective mailing address set forth below (or such other address as
         the Guarantor may give notice of to the Holders of the Capital
         Securities and to the Guarantee Trustee):

                           R&G Acquisition Holdings Corporation
                           105 Live Oaks Gardens, Casselberry, FL 32707
                           Attention: Joseph R. Sandoval
                           Telecopy: (407) 260-0288
                           Telephone: (407) 260-1003

                           R&G Financial Corporation
                           280 Jesus T. Pinero Ave.
                           Hato Rey, San Juan, Puerto Rico 00918


                                       16
<PAGE>
                           Attention: Joseph R. Sandoval
                           Telecopy: (787) 766-8175
                           Telephone: (787) 756-2924

                  (c)      If given to any Holder of the Capital Securities, at
         the address set forth on the books and records of the Issuer.

                  All such notices shall be deemed to have been given when
received in person, telecopied with receipt confirmed, or mailed by first class
mail, postage prepaid, except that if a notice or other document is refused
delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered
on the date of such refusal or inability to deliver.

SECTION 8.4.      Benefit.

                  This Guarantee is solely for the benefit of the Holders of
the Capital Securities and, subject to Section 2.1(a), is not separately
transferable from the Capital Securities.

SECTION 8.5.      Governing Law.

                  THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT
OF LAWS PRINCIPLES THEREOF.

SECTION 8.6.      Counterparts.

                  This Guarantee may contain more than one counterpart of the
signature page and this Guarantee may be executed by the affixing of the
signature of the Guarantor and the Guarantee Trustee to any of such counterpart
signature pages. All of such counterpart signature pages shall be read as
though one, and they shall have the same force and effect as though all of the
signers had signed a single signature page.


                                       17
<PAGE>
         THIS GUARANTEE is executed as of the day and year first above written.


                                    R&G ACQUISITION HOLDINGS
                                    CORPORATION,
                                    as Guarantor

                                    By: /s/ Victor J. Galan
                                       ----------------------------------------
                                    Name: Victor J. Galan
                                    Title: Chairman of the Board and Chief
                                           Executive  Officer


                                    R&G FINANCIAL CORPORATION,
                                    as Guarantor

                                    By: /s/ Victor J. Galan
                                       ----------------------------------------
                                    Name: Victor J. Galan
                                    Title: Chairman of the Board and Chief
                                           Executive  Officer


                                    WILMINGTON TRUST COMPANY, as
                                    Guarantee Trustee

                                    By: /s/ Anita E. Dallago
                                       ----------------------------------------
                                    Name: Anita E. Dallago
                                    Title: Senior Financial Services Officer


                                       18