Surety

1. Trade finance - credit support.

In trade finance a surety is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.

A surety is generally a lesser obligation for the issuer, compared with a guarantee.

2. Criminal law - court proceedings.

An amount of money paid to support the attendance of a defendant in court.

The money is forfeited if the defendant does not appear.

3. Trade finance - law.

A party providing a surety on behalf of another.

See also

• Bond
• Call
• Contract
• Credit support
• Criminal law
• Guarantee
• Indemnity
• Performance
• Retention bond
• Surety bond
• Trade finance

External link

Differences between sureties and guarantees in trade finance - Euler Hermes