Guarantor
Categories: Insurance
In general, the term "guarantor" refers to a party that guarantees something. So, if a quarterback says before the Super Bowl “We’re 100% definitely going to win,” he becomes the guarantor.
The word has particular meaning in real estate. It’s the co-signer who promises to pay if a tenant stiffs the landlord on rent.
You’re just out of college, trying to get a job and not really able to afford an apartment. As such, no landlord will sign a lease with you. To get you out of the house, your parents agree to become guarantors for the lease. They co-sign the lease for you, promising to pay if you flake out. If you miss a payment, they are on the hook.
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Finance: What is a Surety Bond?0 Views
Finance allah shmoop What is a surety bond Think sure
It t like certainty Remember when you were a kid
at summer camp and had to pony up a buck
to prove your heavy roller status at friday night's poker
game And then there was a buddy who promised to
pay more than that if you lost more than your
buck Well surety bonds air kind of like that We
repeat kind of a surety bond is an agreement between
three parties One party guarantees that a second party will
fulfil a promise to the third party For example one
signer might guarantee that a small business will honor a
government contract That is that small business will have to
go borrow a whole bunch of money to go build
a bunch of fence wire stuff for the government that
they would need somewhere in the south And then some
bigger contractor would guarantee that that small business will in
fact perform on the contract If the small business doesn't
perform the contract like as guaranteed building whatever fencing materials
and the government wanted to build will the person who
signed on their behalf would likely have to either pay
up or build the fence themselves The big guy i
either guarantor gives the little guy the principal surety in
delivering the contract to whoever wants it toe happen A
k a The oblige g remember that song about the
government there yet oblige E ope elijah Life goes on
Sorry we're done anyway all the parties involved bond with
certainty the delivery of whatever product or service that surety
bond is standing behind So yeah that's what it is 00:01:36.669 --> [endTime] And don't call us surety