A(n)________ is an arrangement in which a third party promises to be secondarily liable for the payment of another's debt.

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A guaranty arrangement is an agreement where a third party agrees to take responsibility for a debtor's payment in case of default. This party is only liable if the debtor fails to pay, and the creditor can then seek payment from the guarantor. This arrangement acts as an added security measure for the creditor.

A(n)________ Is an Arrangement in Which a Third Party Promises