4.3.2 The Surety's Obligations

• Jurisdiction: Arizona

A common form of suretyship is the simple guarantee. For example, when a parent guarantees a promissory note of a son or daughter, the parent is acting as a surety, the child is the principal and the obligee is the lender. The lender is entitled to be paid only once, even though both the parent and the child (both also referred to as obligors) promised to repay the debt.

A more formal definition of suretyship is the relationship which exists where one person has undertaken an obligation and another person...