Meaning & Definition of word "Guarantor"
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.