Surety
Someone who assumes direct liability for another's obligation. Financial creditors may require the debtor to find a surety, who then signs the loan agreement along with the debtor. Although similar to a guarantor, a financial surety's liability arises as soon as the agreement is closed.
Definition from Nolo’s Plain-English Law Dictionary
A person who agrees to be responsible for another's debt or obligation, such as a bonding company that posts a bond for a building contractor. Unlike a guarantor (who is liable to creditors only if the debtor fails to perform) a surety is directly liable.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:25 pm
