Dictionary of Banking Terms: guaranty
guaranty
three-party agreement, involving a promise by one party (the guarantor) to fulfill the obligation of a person owing a debt if that person fails to perform. The guaranty (also spelled guarantee) is a contingent liability of the guarantor.
Dictionary of Business Terms: guaranty
guaranty
- promise to be responsible for the debt, default, or miscarriage of another.
- warranty or promise to undertake an original obligation.
- something given as security for the performance of an act or the continued quality of a thing. See also surety bond.
Dictionary of Real Estate Terms: guaranty
guaranty
an assurance provided by one party that another party will perform under a contract.
Example: Fred Garrison is an experienced developer. His daughter, Ruth, decides to branch out and start her own company. The construction lender requires a guaranty from Fred Garrison before granting Ruth Garrison a loan for her first project.
