Term -Surety

« Back to Glossary Index

An individual or corporation legally liable for the debt, default, or failure of a principal to satisfy a contractual obligation. The types of sureties referred to are as follows:(1) An individual surety is one person, as distinguished from a business entity, who is liable for the entire penal amount of the bond.(2) A corporate surety is licensed under various insurance laws and, under its charter, has legal power to act as surety for others.(3) A cosurety is one of two or more sureties that are jointly liable for the penal sum of the bond. A limit of liability for each surety may be stated.

« Back to Glossary Index

Pin It on Pinterest

Share This