An accommodation bill is a type of bill of exchange signed by an individual who acts as a guarantor, ensuring the bill’s payment in case the acceptor fails to pay at maturity. These bills are often called windbills or windmills.
An accommodation party is an individual who signs an accommodation bill as the drawer, acceptor, or endorser, thereby acting as a guarantor to assure the payment of that bill.
A guarantee is a formal promise made by a third party, known as a guarantor, ensuring the fulfillment of contractual obligations if the primary party defaults. This mechanism is often used in financial transactions to mitigate risk.
A person or entity that guarantees, endorses, or provides indemnity agreements with respect to debts owed by another party. The guarantor ensures the debt will be repaid, and any losses incurred are deductible when sustained.
A recourse loan is a type of loan in which the lender has the right to pursue the borrower's other assets beyond the collateral if the borrower fails to meet the repayment terms.
