associatetitleagency.thecountrybankofneedham.com

Guaranty of Collection Principal

Guarantor of Collection

Guarantee of Collection

Guarantee Agreements

1 unable to locate or serve the principal.

2. the principal is insolvent

3. the lender is unsuccessful in obtaining payment even after it obtains a judgement against the principal.

U.C.C 3-419(d) Reinstatement of Surety ship 15(b)

By executing a guaranty, would it thus provide a backup source of payment:

This for the lender:

and which from who the lender could obtain payment even if RFT was unable

or unwilling

to repay its debt

voluntarily

In legal parlance would become a

guarantor, a

surety,

or more formally a

secondary obligor

the party owes the money directly RFT would be known as the

principal obligor or just the principal.

finally a party who the money is owed the

lender would be referred to as the creditor or the obligor

the person to whom the obligor is obliged.

Accommodation party is any party who signs negotiable instrument for the purpose of incurring liability without directly benefiting firm the value that the credit gives for the instrument U.C.C 3-419(a). The accommodated is the party for whose benefit the value was given, generally the principal borrower or issuer of the instrument.

Under article 3, an accommodation party is treated as as the primary obligor. U.c.c 3-419, 3-605

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