{"id":12035,"date":"2018-01-12T03:55:09","date_gmt":"2018-01-12T03:55:09","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=12035"},"modified":"2018-03-10T21:20:21","modified_gmt":"2018-03-10T21:20:21","slug":"guarantor-someone-who-makes-a-guaranty-or-gives-security-for-a-debt-either-guaranteeing-payment-or-collection-if-the-principal-debtor-becomes-in-default","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=12035","title":{"rendered":"guarantor – someone who makes a guaranty or gives security for a debt, either guaranteeing payment or collection if the principal debtor defaults"},"content":{"rendered":"

\u00a0 \u00a0 \u00a0This page is continued from Legal Instruments<\/a> >>>> Undertaking<\/a> >>>> Guaranty<\/a>:<\/span>
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guarantor<\/span>:<\/span><\/span><\/strong>
\n (19c)<\/span><\/span><\/p>\n

1. Someone who makes a guaranty<\/a> or gives<\/span> security<\/a> for a debt.\u00a0 *\u00a0 While a surety’s<\/span> liability<\/a> begins with that of the principal, a guarantor\u2019s<\/span> liability<\/a><\/strong> does not begin until the principal debtor is in default. <\/strong>\u2014 aka <\/span><\/span>guarantor surety<\/strong><\/em><\/span>. Cf. SURETY (1). [1]<\/span>
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1. The person bound, by a contract of guaranty<\/a>.\u00a0<\/span> 24 Am J1st Guar \u00a7 2<\/span>.<\/span><\/span><\/strong><\/p>\n

One who undertakes to answer for a debt, default, or miscarriage of another.<\/strong> [2]<\/span><\/p>\n

1. A person who makes or gives a guaranty<\/a>.<\/strong> [3]<\/span><\/p>\n

\u00a0<\/span>\u00a0\u00a0\u00a0 Excerpt from <\/span>Fred H. Miller and Alvin C. Harrell’s<\/span> The Law of Modern Payment Systems<\/em><\/a> (2003):<\/span><\/strong><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cA guarantor either guarantees payment or collection, depending on the words used.\u00a0 \u2018Payment guaranteed\u2019 or equivalent words added to a signature mean the signer will pay the instrument if it is not paid when due\u00a0<\/span><\/strong>without a need for the holder to resort to another party. \u2018Collection guaranteed\u2019 means resort must first be had to others.<\/span>\u201d<\/strong> [4]<\/span><\/span><\/p>\n

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coguarantor<\/span><\/strong><\/span> – (1875) One of two or more guarantors for the same debt.<\/strong><\/span><\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0 Excerpt from Herschel W. Arant’s<\/span> Handbook of the Law of Suretyship and Guaranty<\/em><\/a> (1931):<\/span><\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0 \u201cLittle is gained by the use of the term coguarantor, inasmuch as most of the problems that arise, where either this term or the term cosurety would be proper, involve the relations between the guarantors and sureties themselves.\u00a0 The rights of cosureties and coguarantors inter se and their rights against the principal being the same, there is no advantage in attempting to suggest the form of their promise to the obligee by the use of the terms cosureties or coguarantors.<\/span>\u201d<\/span><\/strong> [5]<\/span><\/span><\/p>\n

guarantor of collectibility<\/span> –<\/span><\/span><\/strong> (1881) Someone who guarantees a debtor\u2019s solvency and is under a duty to pay only if the creditor is unable to collect from the principal debtor after exhausting all legal remedies, includ<\/strong><\/span><\/span>ing demand, suit, judgment, and any supplementary proceedings.<\/span><\/strong><\/span><\/p>\n

guarantor of payment<\/span> –<\/span><\/strong><\/span> (1814) Someone who guarantees payment of a negotiable instrument when it is due without the holder first seeking payment from another party.\u00a0 *\u00a0 A guarantor of payment is liable only if \u201cpayment guaranteed\u201d or equivalent words are added to the guarantor\u2019s indorsement.<\/strong><\/span><\/span><\/p>\n

officious guarantor<\/span> –<\/span><\/span> Someone who guarantees a debt without being requested or having a. legal duty to do so and who therefore may claim no reimbursement of money paid on the guaranty.<\/span><\/strong>\u00a0 See OFFICIOUS INTERMEDDLER. [1]
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References:<\/span><\/span><\/strong><\/p>\n

Disclaimer:<\/span><\/span><\/strong> All material throughout this website is compiled in accordance with Fair Use<\/a><\/span><\/strong>.<\/strong><\/p>\n

[1]: Black\u2019s Law Dictionary\u00a0Deluxe Tenth Edition\u00a0by Henry Campbell Black & Editor in Chief Bryan A. Garner<\/a>. ISBN: 978-0-314-62130-6<\/span><\/strong><\/p>\n

[2]: Ballantine\u2019s Law Dictionary\u00a0<\/a><\/span><\/strong>with Pronunciations
\n<\/span><\/em>Third Edition<\/span><\/strong><\/a>\u00a0by James A. Ballantine\u00a0<\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/span><\/em>Edited by William S. Anderson.\u00a0\u00a0\u00a9 1969 by THE LAWYER\u2019S CO-OPERATIVE PUBLISHING COMPANY.\u00a0 Library of Congress Catalog Card No. 68-30931<\/span><\/strong><\/p>\n

[3]: Ballantine’s Law Dictionary <\/a><\/span><\/strong>Legal Assistant Edition<\/span><\/a><\/em>
\nby Jack Ballantine\u00a0<\/span><\/strong>(James Arthur 1871-1949).\u00a0\u00a0<\/span><\/em>Doctored<\/span><\/a><\/strong>\u00a0<\/span><\/em>by\u00a0Jack G. Handler,\u00a0J.D.<\/a>\u00a0\u00a9 1994 Delmar by Thomson Learning.\u00a0 ISBN 0-8273-4874-6.<\/span><\/strong><\/p>\n

[4]: Fred H. Miller & Alvin C. Harrell, The Law of Modern Payment Systems<\/em><\/a> 5 5.02, at 195 (2003).<\/span><\/span><\/strong><\/p>\n

[5]: Herschel W. Arant, Handbook of the Law of Suretyship and Guaranty<\/em><\/a> 12 (1931).<\/span><\/strong><\/p>\n

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