Conditional Guaranty

What is Conditional Guaranty?

A definition of conditional guaranty is: One which depends upon some extraneous event, beyond the mere default of the principal, and generally upon notice of the guaranty, notice of the principal’s default, and reasonable diligence in exhausting proper remedies against the principal. More details on the Encyclopedia. One which is not immediately enforceable against the guarantor upon default of the principal but one in which the creditor must take some action in order that liability arise.[1]

Resources

Notes

1. “Conditional Guaranty” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

See Also