Surety
A person or entity that assumes responsibility for the debt, obligation, or performance of another party. A surety bond guarantees performance.
Encyclopedia entry: Surety
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surety
A surety is a person or entity that assumes direct liability for another’s obligation . Financial creditors may require the debtor to find a surety, who then signs the loan agreement along with the debtor. A financial surety’s liability arises as soon as the agreement is closed. Sureties are commonly used in legal, financial, and contractual contexts, such as in surety bonds , to ensure compliance with agreements and obligations. Although similar to a guarantor , a financial surety's liability arises as soon as the agreement is closed.
[Last reviewed in June of 2024 by the Wex Definitions Team
]
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.