Surety: Difference between revisions
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imported>Doug Williamson (Create page. Sources: Euler Hermes webpage https://www.eulerhermes.com/en_BE/news/latest-news/bndg-what-is-the-difference-between-a-guaranty-and-a-surety.html#:~:text=A%20surety%5B1%5D%20is%20an,the%20obligation%20towards%20the%20principal. & ODL) |
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Latest revision as of 10:16, 4 April 2021
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