Suretyship Flashcards
1
Q
Name the parties in a suretyship
A
Creditor (bank)
Debtor (kid)
Surety (Parent, cosign)
2
Q
What is a suretyship?
A
Arrangement when a person agrees to be answerable to a C for a claim against another person
3
Q
3 possible varieties of surety arrangements
A
Primary- C is permitted to treat surety as if they were the D and demand payment w/out any proof of default by the principal D
Secondary- C can only demand payment if the principal D defaults (guarantor or endorser of check or negotiable instrument)
Last resort- conditional surety, C can’t demand payment from surety until exhausted all means of collection from the principal D (seizing collateral, court judgments, bankruptcy)
