Meaning & Definition of word "Guarantor"
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Guarantor
/ˈɡɛrəntɔr/
noun:
- 1. A person or organization that agrees to be responsible for the debt or obligation of another in the event of default.
- Example: The bank required a guarantor to co-sign the loan agreement.
- 2. A person who provides a guarantee, often ensuring that certain conditions will be met.
- Example: As a guarantor, she assured the landlord that the rent would be paid on time.
- 3. An individual or entity that offers security for the performance of an obligation.
- Example: The company appointed a guarantor to back the contract signed with the supplier.
- 4. In legal terms, a party that takes on a legal responsibility for another party's obligations.
- Example: The guarantor was legally bound to cover the loan if the borrower failed to do so.
Etymology
Middle English, from Old French garant, from garantir meaning 'to guarantee'.
Common Phrases and Expressions
personal guarantor:
An individual who guarantees the obligations of another.
corporate guarantor:
A business entity that guarantees a loan or obligation.
letter of guarantee:
A document issued by a guarantor guaranteeing the obligations of another party.
Related Words
guarantee:
A formal assurance that certain conditions will be fulfilled.
co-signer:
A person who signs a loan or lease with another, agreeing to pay if the other does not.
surety:
The assurance or guarantee that something will occur or be performed.
Slang Meanings of guarantor
Meaning: backup
Example Sentence: He’s my backup for the loan.
Meaning: safety net
Example Sentence: Having a safety net makes taking risks easier.