Guaranty (Noun)
Meaning
A collateral agreement to answer for the debt of another in case that person defaults.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The bank required a personal guaranty from the business owner before approving the large loan.
- She signed a guaranty agreement to cover her brother's mortgage payments if he failed to make them.
- The company's CEO provided a corporate guaranty for the lease, ensuring the landlord would be paid.
- As a condition of the loan, the lender demanded a guaranty from the borrower's wealthy investor.
- The guaranty agreement stated that the co-signer would be responsible for the full amount if the borrower defaulted.