Surety

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Related to sureties: guarantor, suretyship

Surety

An individual or corporation that guarantees the performance or actions of another.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The judge said: 'The defendant and sureties shall provide two of their recent passports for court record.
The judge reiterated that the order directing the sureties to pay the money was an order of interim forfeiture.
To better understand the relationship between the court, the accused, and the surety, this paper explores the following questions: How do justices of the peace and Crowns determine suitable sureties? How are surety releases framed by institutional court officials during bail proceedings?
Kash and Bruce Kahn, "Bad News for Construction Insurers Might Be Good News for Sureties," in the IADC Fidelity and Surety Newsletter, March 2014.
Several sureties have entered the market over the last few years, including both new capital and P&C carriers looking to expand their revenue by writing an additional line of business.
By the time of the Magna Carta, sureties were recognized as an important tool for facilitating commercial ventures without a banking industry.
Sureties want to see strong working capital which is defined as current assets minus current liabilities.
"HR 776 requires non-corporate sureties to pledge specific and secure assets as required from others providing collateral to the federal government and requires those assets be held by a government entity to ensure payments can be made in the event they are needed," he said.
Employing the various underwriting and claims handling measures can assist sureties in minimizing potential losses.
For example, a timeshare developer, whose cash flow was severely pinched by the credit crisis and also was embroiled in a contract dispute with a construction contractor on a completed project, had limited resources to meet sureties' collateral requirements for future bonding.
After filing the sureties before Chief Metropolitan Magistrate Killivalavan in Egmore, Madras High Court Advocate Association president and Vasanthy's counsel R C Paul Kanagaraj said, "The sureties were filed following media reports that questioned the veracity of the earlier sureties.
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.