guarantor


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guarantor

n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee)

guarantor

noun approver, attester, backer, cosigner, endorser, guarantee, guaranty, sponsor, subscriber, supporter, surety, warrantor
Associated concepts: commercial transactions
See also: backer, insurer, sponsor

guarantor

a person who gives or is bound by a GUARANTEE.

GUARANTOR, contracts. He who makes a guaranty.
     2. The guarantor is bound to fulfill the engagement he has entered into, provided the principal debtor does not. He is bound only to the extent that the debtor is, and any payment made by the latter, or release of him by the creditor, will operate as a release of the guarantor; 3 Penna. R. 19; or even if the guarantee should give time to the debtor beyond that contained in the agreement, or substitute a new agreement, or do any other act by which the guarantor's situation would be worse, the obligation of the latter would be discharged. Smith on Mer. Law, 285.
     3. A guarantor differs from a surety in this, that the former cannot be sued until a failure on the part of the principal, when sued; while the latter may be sued at the same time with the principal. 10 Watts, 258.

References in periodicals archive ?
A guarantor who is unable to recover from the debtor or co-guarantor is entitled to a bad debt deduction, for both principal and interest.
However, the lease included a requirement that, if the tenant was to become insolvent and the liquidator was to disclaim the lease, the guarantor would, if required by the landlord, take a new lease of the premises for the remainder of the term.
No collateral is required for the loans but they must be guaranteed by a third party, mostly individual guarantors.
Solicitor General's Office, who supported the spousal guarantors' position): So in our view, there's no place where reading applicant to include guarantor wouldn't work or would create a problem.
Response: The good guy should ensure through some corporate documents that as long as she is the good guy guarantor, she has the authority and ability to cause the tenant to surrender possession of the premises and to pay the obligations under the lease sufficient to release the good guy from her guaranty.
According to unnamed government sources cited by CNA, the finance ministry now proposes that guarantors are called to settle the principal debtor's dues when the latter is unable to do so.
It is important to note that that unless a guarantee is backed by security, a lender's claim on the guarantor will be unsecured.
There are also specific criteria the guarantor will have to meet.
The guarantor must have received reasonable compensation for guaranteeing the loan.
The court ordered if guarantor fails to present Ishaq Dar till December 04 then his surety bond will be seized.
According to details, the guarantor Ahmad Rasheed Ali had furnished Rs 100,000 surety for bail of accused Amjad Ashraf who was member of a banned organisation and implicated by Ghalib Market police in a hate literature case along with Agha Tahir and 11 other members of the organisation.
A temporary guarantee, digitally signed by the guarantor - p7m format, or presented in another format provided that this control code; in both cases must be accompanied by the document certifying the powers of the signature of the guarantor, for an amount equal to 2% of the contract value;