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Glossary Term: GUARANTY

Definition(s) for GUARANTY:


1. ) A term used to refer contract in which one person becomes liable to perform a specific act or duty for another upon that person's failure to perform. A guarantor promises either that another person will perform his or her duty or that, if the other person does not perform his or her duty, the promisor will. Nonperformance by the other person is a condition precedent to the guarantor's duty to pay or perform. See also Guarantor.


See Also:
COLLECTION GUARANTY, CONTINUING GUARANTY, DOWNSTREAM GUARANTY, LIMITED GUARANTY, PAYMENT GUARANTY, PENSION BENEFIT GUARANTY CORPORATION (PBGC), UPSTREAM GUARANTY


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