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Suretyship

Suretyship is also referred to as surety, surety bond or credit guarantee in terms of which there are three parties involved – the creditor, the principal debtor and the Surety. The Surety undertakes and accepts liability for the indebtedness of a borrower who may default on his responsibility is known as a Surety or Credit Guarantor. A Suretyship, in order to be valid and enforceable must comply with specific formalities.
Please also visit and view Commercial and Contract law hereinabove and Credit law hereunder as related subject topic(s).