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Simple English definitions for legal terms
accommodation surety
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A quick definition of accommodation surety:
An accommodation surety is a person who agrees to pay someone else's debt or fulfill their obligation if they cannot. This is different from a guarantor, who is only responsible if the debtor fails to meet their duties. A surety is directly liable and often receives no compensation for assuming this responsibility. It's important to note that a surety and a guarantor are not the same thing, even though the terms are sometimes used interchangeably.
A more thorough explanation:
An accommodation surety is a person who agrees to be primarily responsible for the payment of someone else's debt or the performance of someone else's obligation. This means that if the debtor fails to meet their duties, the surety will be directly liable for the debt or obligation.
For example, if a friend asks you to co-sign a loan for them, you become an accommodation surety. If your friend fails to make payments on the loan, the lender can come after you for the money.
It's important to note that an accommodation surety is different from a guarantor. A guarantor is only liable to the creditor if the debtor fails to meet their duties. A surety, on the other hand, is directly liable.
Overall, an accommodation surety is someone who takes on a significant financial risk to help someone else. It's important to carefully consider the potential consequences before agreeing to be a surety for someone else.