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 ?
Against this backdrop of the State Legislature having defined suretyship as a "kind of insurance" and a surety bond as a "contract of insurance", the legislative precedent for using the term "policy" to include surety contracts, the Superintendent's longstanding construction of the statutory term "policy" as including surety contracts, and the New York appellate decisions referring to and construing surety "bonds" as "policies", it is clear that the Legislature used the term "policy" within Insurance Law [section] 7434 (a) (1) (ii) in its ordinary sense of referring to "a document containing a contract of insurance" (Black's Law Dictionary [9th ed 2009]).
The specific goal of this article is to compare the legal regimes attaching to suretyship and solidarity in order to determine whether one or the other may be helpful in understanding the relations that arise between parties to an imperfect delegation.
Where suretyship by which the future obligation is secured is contracted for a fixed period, it terminates on the day of maturity of the time-limit of suretyship if the obligation did not arise before the expiration of this time-limit.
perhaps that is just when a little extra effort to verify corporate suretyship could save you and your company much distress and loss by avoiding the old "new" trap of personal sureties.
As early as 1912, Williston observed that the Uniform Negotiable Instruments law apparently reversed the rule of suretyship and permitted the creditor to covenant not to sue the principal debtor and to continue to have rights against a surety.
The last published textbook on suretyship remained the fifth edition of The Law of Suretyship, by Steams, published in 1951.
Absent a clear legislative directive, the court concluded that suretyship, as historically understood in the insurance and suretyship fields, does not constitute the business of insurance under Article 21.
PMI Europe is authorized to provide credit, suretyship and miscellaneous financial loss insurance and is regulated by the Irish Financial Services Regulatory Authority.
official sales representatives of manufacturing plants who provided originals or certified copies of contracts of suretyship or agency agreements with manufacturing enterprises with an indication of the duration of these contracts.
PMI Europe is authorised to provide credit, suretyship and miscellaneous financial loss insurance and is regulated by the Irish Financial Services Regulatory Authority.
Deposits and Guarantees required: The bidder must (irrespective of the value of the bid) as a tender guarantee, enclose the original bank guarantee or suretyship for bid in the amount of 5 000 EUR.