surety

sur·e·ty   (shŏŏr'ĭ-tē)    n.   pl. sur·e·ties The condition of being sure, especially of oneself; self-assurance. Something beyond doubt; a certainty. A pledge or formal promise made to secure against loss, damage, or default; a security. One who has contracted to be responsible for another, especially one who assumes responsibilities or debts in the event of default. [Middle English surte, from Old French, from Latin sēcūritās, from sēcūrus, sure; see secure.] sur'e·ty·ship' n.

Surety

When a guarantor or a sum of money is held as a guarantee for a loan in good faith.

Investopedia Commentary

It is similar to a deposit on a loan or contract.

See also: Guarantor

Main Entry: sure·ty
Pronunciation: 'shur-&-tE
Function: noun
Inflected Form: plural -ties
Etymology: Anglo-French seurté, literally, guarantee, security, from Old French, from Latin securitat- securitas, from securus secure
1 : a formal engagement (as a pledge) given for the fulfillment of an undertaking
2 : one (as an accommodation party) who promises to answer for the debt or default of another
NOTE: At common law a surety is distinguished from a guarantor by being immediately liable as opposed to becoming liable only upon default of the principal. Under the Uniform Commercial Code, however, a surety includes a guarantor, and the two terms are generally interchangeable.

Surety

one who becomes responsible for another. Christ is the surety of the better covenant (Heb. 7:22). In him we have the assurance that all its provisions will be fully and faithfully carried out. Solomon warns against incautiously becoming security for another (Prov. 6:1-5; 11:15; 17:18; 20:16).