A guarantor undertakes that he will repay a debt incurred by another person or company to a bank or other creditor and the bank or other creditor can require him to pay the outstanding amount if that person cannot or will not pay their indebtedness. Proprietors and directors of companies are often asked to give personal guarantees for their company's borrowings to provide additional security. A bank will commonly require the guarantee to be secured, for example a mortgage over a director's house. In the case of co-guarantors each guarantor will be fully liable for the outstanding amount - it is up to guarantors to resolve their respective obligations between themselves.

Easyform Glossary of Law Terms. — UK law terms.

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  • Guarantees —   (payment)   Refer instead to Payment guarantees.   (performance)   Refer instead to Performance guarantees …   International financial encyclopaedia

  • Guarantees — Guarantee Guar an*tee , n.; pl. {Guarantees}. [For guaranty, prob. influenced by words like assignee, lessee, etc. See {Guaranty}, and cf. {Warrantee}.] 1. In law and common usage: A promise to answer for the payment of some debt, or the… …   The Collaborative International Dictionary of English

  • Guarantees, Law of — • A law passed by the senate and chamber of the Italian parliament, 13 May, 1871, concerning the prerogatives of the Holy See, and the relations between State and Church in the Kingdom of Italy Catholic Encyclopedia. Kevin Knight. 2006 …   Catholic encyclopedia

  • Guarantees, Law of — ▪ Italy [1871] Italian  Legge Delle Guarentigie        (May 13, 1871), attempt by the Italian government to settle the question of its relationship with the pope, who had been deprived of his lands in central Italy in the process of national… …   Universalium

  • guarantees — guar·an·tee || ‚gærÉ™n tɪː n. security; warranty; pledge; assurance v. vouch for; give a guarantee; give a warranty; promise, assure …   English contemporary dictionary

  • Payment guarantees —   Guarantees issued on the strength of which the bank s customer is able to receive advance payment for a certain project. The bank can refund the advance payment if the customer does not complete the project in accordance with the contract… …   International financial encyclopaedia

  • Performance Guarantees —   Guarantees issued concerning the due fulfilment on the part of a customer of his obligations to deliver a contracted performance. The amount of the performance guarantee is generally 10% of the contract amount …   International financial encyclopaedia

  • guarantees for peace — promises for peace, assurances of peace, pledges for peace …   English contemporary dictionary

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  • Guarantees (received) zero risk weighting —   In finance this normally means:   (counter)guaranteed by local country regional authorities.   (counter)guaranteed by central governments zone A, including credit insured items.   (counter)guaranteed by central governments zone B, including… …   International financial encyclopaedia

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