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DictionarysuretyGuarantee
noun

surety

SHOOR-uh-tee/ˈʃʊrəti/

A guarantee securing fulfillment of an obligation.

The guarantor offers surety to secure the borrower's obligation to the lender.

A guarantor stands beside a borrower and offers a reassuring handshake to a lender over a blank obligation document and coins, guarantee relationship clear.
Etymology
sureLatinfree from care or danger
+tyLatinstate or condition

The state of being free from care or danger became assurance expressed through a pledge or guarantee. Surety also came to name the person who supplies that assurance by accepting responsibility for another’s obligation.

In context

Audiopedia0:00
In finance, a surety, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults.
Surety

More examples

  • Her father acts as surety for the apartment lease.
  • The bond provides surety that the contractor will finish the work.
  • Both sureties must sign before the loan is approved.

Forms

surety · sureties

Similar words

guarantee
A broader promise of performance, quality, or another outcome.
guarantor
Specifically the person or organization backing another party's obligation.
security
Property or funds pledged to cover an unpaid obligation.