surety

Surety is a legal agreement where a third party, known as a surety or cosigner, agrees to take responsibility for another person’s debt or obligation if that person fails to fulfill it. Essentially, the surety guarantees that the lender will get paid or the obligation will be completed, even if the primary party defaults. This arrangement provides extra security for lenders or parties involved, reducing their risk. The surety’s liability is usually secondary, meaning they are only responsible if the main debtor cannot pay or perform.