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 ?
Equating the role of a surety to a civilian jailer, prison guard, or police officer also helped reinforce a strict chain of command.
In a state such as Illinois, where there is no mechanism short of settlement or judgment to eliminate a lien, the insolvency of a surety makes no difference, because securing a bond has no legal effect.
(3) The final form came as a result of a compromise because of a contention by surety practitioners that such a release should result in a complete discharge of a surety in all circumstances.