Surety

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Related to sureties: guarantor, suretyship

Surety

An individual or corporation that guarantees the performance or actions of another.

Surety

A sum of money or the guarantee by a third party that a loan or credit extension will be paid. This reduces the risk the lender will lose the money he/she has distributed in the loan. For example, a third party may sign an agreement with the lender with the condition that if the borrower fails to repay the loan, the third party will assume legal liability for it. Often, persons with poor credit cannot receive a loan without surety. See also: Guarantee, Lien.

surety

One who guarantees the performance of another.Contrast with a simple guarantee,which is an agreement to pay money if another does not pay money due.A surety,on the other hand,may have to pay money or undertake the responsibility to complete a project.

References in periodicals archive ?
Employing the various underwriting and claims handling measures can assist sureties in minimizing potential losses.
Recent interviews with several surety executives indicate that, among the major sureties, premium growth will continue to be strong in 2006.
While all bonds have a financial guarantee aspect, sureties consider any bond obligation that does not have any kind of performance component to be a "pure" financial guarantee.
These were all being written on the same day except that the sureties were guaranteeing delivery under one of them, and those guarantees were being used by Mahonia (J.
The frequency and severity of losses has increased in the past six months, a trend that began with smaller regional sureties more than a year ago, said Randal Temple, senior vice president and managing director of Aon Re's Surety and Fidelity Practice Group, Philadelphia.
Three sureties -- F & D, USF&G and Fidelity & Guaranty Insurance Co.