collateral guaranty

An anomalous expression, since a guaranty is inherently collateral, being collateral to the principal obligation, but used by way of emphasizing the existence of a guaranty in the strict sense of the term, in which the obligation of the guarantor is to pay if the principal shall fail to pay or perform, as distinguished from a suretyship, in which the surety is obligated under a direct promise or undertaking to pay or perform. Nading v McGregor, 121 Ind 465, 23 NE 283.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • guaranty — guar·an·ty / gar ən tē, gär / n pl ties [Old French garantie, from garantir to guarantee, from garant warrant] 1: a pledge to pay another s debt or to perform another s duty in case of the other s default or inadequate performance compare letter… …   Law dictionary

  • guaranty — 1. v. To undertake collaterally to answer for the payment of another s debt or the performance of another s duty, liability, or obligation; to assume the responsibility of a guarantor; to warrant. See guaranty noun, 2. n A collateral agreement… …   Black's law dictionary

  • guaranty — 1. v. To undertake collaterally to answer for the payment of another s debt or the performance of another s duty, liability, or obligation; to assume the responsibility of a guarantor; to warrant. See guaranty noun, 2. n A collateral agreement… …   Black's law dictionary

  • guaranty — An undertaking or promise, on the part of one person called the guarantor, which is collateral to a primary or principal obligation on the part of another, and which binds the guarantor to performance in the event of nonperformance by such other… …   Ballentine's law dictionary

  • collateral — /kalaetsral/ Property which is pledged as security for the satisfaction of a debt. Collateral is additional security for performance of principal obligation, or that which is by the side, and not in direct line. Shaffer v. Davidson, Wyo., 445… …   Black's law dictionary

  • collateral warranty — or collateral contract The meaning of this term differs depending on the context in which it is used: • In the general law of contract, a term or contract which runs outside the main written contractual agreement between the parties. • In… …   Law dictionary

  • collateral documents — USA Also known as security documents. The loan documents in a secured loan transaction which secure the borrower s obligations to the lender under the loan agreement. Collateral documents include any documents granting a security interest in… …   Law dictionary

  • Collateral Allocation Mechanism Exchange — Collateral Allocation Mechanism (CAM) Exchange USA Provisions in certain loan agreements that protect lenders and investors who lend in multiple currencies, different legal jurisdictions and with collateral and guaranty arrangements that vary… …   Law dictionary

  • Collateral Allocation Mechanism (CAM) Exchange — USA Provisions in certain loan agreements that protect lenders and investors who lend in multiple currencies, different legal jurisdictions and with collateral and guaranty arrangements that vary between loan tranches, by equalizing the recovery… …   Law dictionary

  • collateral — noun she put up her house as collateral for the loan Syn: security, surety, guarantee, guaranty, insurance, indemnity, indemnification; backing …   Thesaurus of popular words

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