Difference between revisions of "Guaranty"
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Latest revision as of 10:56, 27 March 2020
Definition
Guaranty (Guarantee). A commitment whereby something, such as a debt, cash flows on a debt instrument (e.g., interest payments), or performance of some obligation, is guaranteed if the person or organization with primary liability fails to perform
It is a promise or assurance by a person or institution to pay a loan in the event that the borrower fails to meet its obligation. With a guarantee cover, the lender's risks are minimized.
See Also
- Financial Guarantee
- Barron's Dictionary of Business and Economics Terms, Fifth Edition, 2012
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.