GUARANTOR
guarantor. One who makes a guaranty or gives security for a debt. • While a surety’s liability
begins with that of the principal, a guarantor’s liability does not begin until the principal debtor is
in default. Cf. SURETY. [Cases: Guaranty 29, 33.]
“A guarantor either guarantees payment or collection, depending on the words used.
‘Payment guaranteed’ or equivalent words added to a signature mean the signer will pay the
instrument if it is not paid when due without a need for the holder to resort to another party.
‘Collection guaranteed’ means resort must first be had to others.” Fred H. Miller & Alvin C.
Harrell, The Law of Modern Payment Systems § 5.02, at 195 (2003).
guarantor of collectibility.One who guarantees a debtor’s solvency and is under a duty to pay
only if the creditor is unable to collect from the principal debtor after exhausting all legal remedies,
including demand, suit, judgment, and any supplementary proceedings. [Cases: Guaranty 33, 45,
77(2).]
guarantor of payment.One who guarantees payment of a negotiable instrument when it is due
without the holder first seeking payment from another party. • A guarantor of payment is liable
only if “payment guaranteed” or equivalent words are added to the guarantor’s indorsement.
[Cases: Guaranty 35, 45, 77.] [Blacks Law 8th]