Someone who promises to fulfill another party's obligation if the other party fails to perform. Financial creditors may require the debtor to find a guarantor, who then signs the loan agreement along with the debtor. Although similar to a surety, a financial guarantor's liability does not actually arise until the debtor defaults.
Definition from Nolo’s Plain-English Law Dictionary
A person or entity that makes a legally binding promise to be responsible for another's debt or performance under a contract, if the other defaults or fails to perform. The guarantor gives a "guaranty," which is an assurance that the debt or other obligation will be fulfilled.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:17 pm