Legal Definitions - stayor

A stayor, a term primarily used in Tennessee law, refers to an individual who acts as a guarantor for a court judgment. This means the stayor formally agrees to be responsible for ensuring that the financial obligations of a judgment, typically a monetary award, are paid if the original party ordered to pay fails to do so. Their involvement often allows for a temporary delay, or "stay," in the enforcement of the judgment against the original debtor.

Here are a few examples to illustrate the role of a stayor:

• Example 1: Small Business Debt

  Sarah, a small business owner in Tennessee, loses a lawsuit and a court judgment orders her to pay $15,000 to a former supplier. She doesn't have the cash immediately available and fears her business assets might be seized. Her uncle, Mark, agrees to step in as a stayor.

  In this scenario, Mark formally guarantees to the court that he will pay the $15,000 judgment if Sarah fails to do so. This arrangement often allows Sarah to receive a temporary "stay" or delay in the enforcement of the judgment, giving her more time to gather the funds without immediate pressure on her business, because the court and the supplier have Mark's assurance of payment.

• Example 2: Tenant Obligations

  A landlord obtains a judgment against a former tenant, David, for $3,000 in unpaid rent and property damage in a Tennessee court. David is struggling financially and cannot pay immediately. His friend, Lisa, offers to be a stayor.

  Here, Lisa, as the stayor, legally commits to the court that she will pay the $3,000 judgment if David does not. This provides assurance to the landlord and the court, potentially preventing immediate collection actions against David and giving him a period of reprieve to try and settle the debt himself, knowing Lisa is the ultimate backup guarantor.