Guarantor of payment

Guarantor of payment – the term refers to the legal figure of the “Guarantor” – the person who promises to make payment for another if payment is not made by the person responsible for making the repayments of a loan or hire purchase agreement. He is a person who pledges collateral for the contract of another, but separately, as part of an independently contract with the obligee of the initial, main agreement. Compare with “surety”.

See also http://www.wisegeek.com/what-is-a-guarantee-of-payment.htm .

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