Guaranty

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • surety bond
  • surety

Definition of Guaranty

  1. An agreement for another person to take responsibility for a debt in the event that the borrower defaults. The use of a guarantor gives the lender a level of protection from a borrower who becomes delinquent in his or her payments. Also known as "surety" or "surety bond."

Related Terms and Acronyms

  • Default Definition,
    • When a borrower fails to fulfill the obligations of a loan or lease.
  • Delinquency Definition,
    • Failure to make mortgage payments when mortgage payments are due.
  • Sub-prime Borrower Definition,
    • A borrower with a less-than-perfect credit report due to late payments or a default on debt payments.
  • Borrower Definition,
    • A person who borrows money or obtains a loan.
  • Credit Risk Definition,
    • The risk of loss assumed under a financial contract that a borrower or a counter-party to a loan or other credit-related contract may default or fail to fulfill its obligations.
  • Loan Definition,
    • Letting another party use something of value temporarily.
  • Bad Credit Loan Definition,
    • A loan taken out by someone with bad credit.
  • Mortgage (mtg) Abbreviation, Important,
    • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • Co-signer Definition,
    • A person who signs a promissory note that is also signed by one or more other parties. All parties take responsibility for the debt if any of the others renege.
  • Lender Definition,
    • The bank or mortgage company offering the loan.
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