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 ?
Though commonly considered to be a form of insurance, surety bonds are a financial instrument that many companies rely on to secure funding and acquire new business.
Additionally, Argo Surety increased its commercial surety capacity to USD100m for qualifying clients, it said and added that the company offers a full line of products and services to businesses in four primary segments, Excess & Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200.
He joins Axis Insurance Insurance following seven years at Berkley Surety Group, where he was a key member of the senior management team with responsibility for all aspects of its contract surety business.
Clients opting for a surety bond will not face charges for failing to use the surety program extended to them by their bonding companies.
In addition to the surety product, both contract surety and commercial surety, Maroney has a wide range of expertise in financially sensitive insurance products such as Fidelity Insurance (Commercial and Financial Institutions), Directors and Officers Legal Liability Insurance, Employment Practices Liability Insurance, Pensions Trust Liability Insurance and various other forms of Errors and Omissions Insurance.
South Coast Surety is a National Managing General Underwriting Surety Only Agency headquartered in San Clemente, CA.
This is the third acquisition for GIG in the surety space.
From a pricing perspective, the overall surety marketplace remains a buyers' market, driven by a few key factors.
A surety bond is also a credit-based financial instrument.
The company has also announced appointment of Javier Torrevejano as surety underwriting manager, Iberia.
In his new role, Pesce will be responsible for building and managing Axis Insurance's surety bond business in the US.