1.something clearly established
2.a guarantee that an obligation will be met
3.one who provides a warrant or guarantee to another
4.a prisoner who is held by one party to insure that another party will meet specified terms
5.property that your creditor can claim in case you default on your obligation"bankers are reluctant to lend without good security"
SuretySure"ty (?), n.; pl. Sureties (#). [OE. seurte, OF. seürté, F. sûreté. See Sure, Security.]
1. The state of being sure; certainty; security.
Know of a surety, that thy seed shall be a stranger in a land that is not theirs. Gen. xv. 13.
For the more surety they looked round about. Sir P. Sidney.
2. That which makes sure; that which confirms; ground of confidence or security.
[We] our happy state
Hold, as you yours, while our obedience holds;
On other surety none. Milton.
3. Security against loss or damage; security for payment, or for the performance of some act.
There remains unpaid
A hundred thousand more; in surety of the which
One part of Aquitaine is bound to us. Shak.
4. (Law) One who is bound with and for another who is primarily liable, and who is called the principal; one who engages to answer for another's appearance in court, or for his payment of a debt, or for performance of some act; a bondsman; a bail.
He that is surety for a stranger shall smart for it. Prov. xi. 15.
5. Hence, a substitute; a hostage. Cowper.
6. Evidence; confirmation; warrant. [Obs.]
She called the saints to surety,
That she would never put it from her finger,
Unless she gave it to yourself. Shak.
SuretySure"ty, v. t. To act as surety for. [Obs.] Shak.
⇨ definição - Wikipedia
|The examples and perspective in this article may not represent a worldwide view of the subject. (December 2010)
A surety, surety bond or guaranty, in finance, is a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. The person or company that provides this promise, is also known as a surety or guarantor.
The situation in which a surety is most typically required is when the ability of the primary obligor or principal to perform its obligations to the obligee (counterparty) under a contract is in question, or when there is some public or private interest which requires protection from the consequences of the principal's default or delinquency. In most common law jurisdictions, a contract of suretyship is subject to the Statute of Frauds (or its equivalent local laws) and is only enforceable if recorded in writing and signed by the surety and the principal.
If the surety is required to pay or perform due to the principal's failure to do so, the law will usually give the surety a right of subrogation, allowing the surety to "step into the shoes of" the principal and use his (the surety's) contractual rights to recover the cost of making payment or performing on the principal's behalf, even in the absence of an express agreement to that effect between the surety and the principal.
Traditionally, a distinction was made between a suretyship arrangement and that of a guaranty. In both cases, the lender gained the ability to collect from another person in the event of a default by the principal. However, the surety's liability was joint and primary with the principal: the creditor could attempt to collect the debt from either party independently of the other. The guarantor's liability was ancillary and derivative: the creditor first had to attempt to collect the debt from the debtor before looking to the guarantor for payment. Many jurisdictions have abolished this distinction, in effect putting all guarantors in the position of the surety.
In the United States, under Article 3 of the Uniform Commercial Code, a person who signs a negotiable instrument as a surety is termed an accommodation party; such a party may be able to assert defenses to the enforcement of an instrument not available to the maker of the instrument.
In the United Kingdom the idea of a loan with a guarantor has been popularised over the last 3 years. Guarantor loans open a unique type of unsecured loan, which is not based on the credit history of the borrower. In fact it is quite the opposite, this loan is based on the credit standing of the person who will guarantee the payment of the loan in case the borrower defaults. Certain circumstances lead to a reduction of credit rating. Whenever a credit rating reduces and becomes poor it will not be very easy to obtain even a high rate bad credit loan. Having a guarantor will address the lender’s concern, and is a great way to regain the lost credibility in terms of obtaining credit.
|This article needs additional citations for verification. (November 2010)
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