surety

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surety

1. a person who assumes legal responsibility for the fulfilment of another's debt or obligation and himself becomes liable if the other defaults
2. security given against loss or damage or as a guarantee that an obligation will be met
3. stand surety to act as a surety

surety

A person or organization who, for a consideration, promises in writing to make good the debt or default of another.
References in periodicals archive ?
The county, however, claimed that the bond was an indemnity or penalty bond because it referenced a "penal" sum and wanted the balance of the bond paid as liquidated damages.
Because this bond was construed by the court's review of the city ordinance as a performance bond, not as a penalty bond (where the obligee recovers the face value of the bond regardless of damage incurred) nor an indemnity bond (where the face value of the bond establishes the obligee's maximum recovery, but the obligee may only recover for actual damages), there was found no purpose by requiring the surety to pay the face value of the bonds.
The multiple penalty bond, such as the blanket position bond, gives separate coverage on each person for a uniform amount, the net effect being the same as though a separate bond were issued on each person covered by the bond and all of such bonds being for a uniform amount.