Cosigner


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Cosigner

A term referring to a person, other than the principal borrower, who signs for a loan. The cosigner(s) assumes equal liability for the loan.

Cosigner

A third party to a loan who provides a guarantee that a loan will be repaid. The guarantee by the cosigner reduces the risk that the lender will lose the money he/she has distributed to the borrower. The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan, the cosigner will assume legal liability for it. A cosigner may be an institution, but is often a relative or friend of the borrower, especially for personal loans. Persons with little or poor credit history sometimes cannot receive a loan without a cosigner. See also: Surety.

cosigner

A person who signs a promissory note in such a capacity that he or she has equal and primary liability with another. Contrast with a guarantor, who is liable only if the original obligor defaults. A cosigner must list the promissory note as a liability on financial statements; a guarantor has only contingent liability which may never ripen into full liability.

References in periodicals archive ?
While no reasons were cited by the chief minister for the dismissal, the move may be explained by the fact that Notezai was among the cosigners of the no-confidence motion against Zehri.
The release is particularly advantageous for parents with several family members attending college, as well as for cosigners unable to take advantage of the current low interest rate environment due to their child's student debt.
Cosigners on that letter included ASTHO, Trust for America's Health and NACCHO.
Estab for 10 yrs in a great location with many repeat customers and cosigners.