Surety

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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 ?
Like several authors writing on delegation, I have mentioned in passing that the relations between parties to an imperfect delegation are not unlike those arising out of a contract of suretyship.
The text is logical, interesting, and informative, an excellent first course in suretyship.
If the debtor fails to perform the obligation, both the debtor and the surety are liable as solidary debtors towards the creditor for the fulfilment of this obligation, unless otherwise provided for by the contract of suretyship.
With regard to NCUA's second proposal to allow credit unions to enter into suretyship and guaranty agreements, ICBA objected to the expansion of commercial lending powers by credit unions as long as they are tax-exempt.
PMI Europe is authorised to provide credit, suretyship and miscellaneous financial loss insurance and is regulated by the Irish Financial Services Regulatory Authority.
The Bible, Magna Carta and "The Merchant of Venice" all make reference to the use of suretyship to assure that someone will carry through on his or her promises.
The successful tenderer may submit a bank guarantee or suretyship with the insurance company.
Deposits and Guarantees required: Suretyship insurance to Tender issued by the insurance company (sample text is attached in Annex no.
758 or equivalent suretyship insurance or deposit with the client, which is not remunerated for the duration credited to the bank account no.
For insurance providers may offer the severity of suretyship with the insurance company.
Suretyship insurance with an insurance company or a bank guarantee for bid in the amount of 3% of the value of the offer or.