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  1. Bond
    a contract involving a compensated surety
  2. Contribution
    When a cosurety pays more than its proportionate share of the debt it can demand payment from other cosurities so that each surety is paying its proportionate share of the debt.
  3. Cosurety
    Two or more seretires are guarenteeing the same debt.
  4. Guarantor
    Similar to a surety, but a guarantor is secondarity liable to the creditor. Thus, in the even that the debtor defaults the creditor must at least ask the debtor to pay, but in the event the debtor says "no", then the creditor may seek payment from the guarantor.
  5. Reimbursement
    If the surety pays the debt, the surety is entitled to receive whatever it paid to the creditor from the debtor.
  6. Subrogation
    After the surety has paid the debt it aquires the rights of the creditor and may now exercise those rights against the debtor. Thus, if the debtor has given the creditor collateral, the surety would have rights against the collateral.
  7. Surety
    A party who promises to pay the debt of another party. Sureties are primarily liable to the creditor.
Card Set:
2012-03-02 05:13:52
Busines Law

Debtor-Creditor Relationships
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