A guaranty that covers all future obligations of the primary debtor to a lender is referred to as a __________ guaranty.

Question

Quizplus · Accepted Answer

A continuing guaranty is a type of guaranty that covers all future obligations of the primary debtor to the lender. This means that the guarantor will be responsible for any and all debts that the primary debtor incurs over the course of the entire lending relationship, not just a specific loan or set of loans. Restricted guaranties, on the other hand, only cover specific debts or loans, while primary guaranties are a type of guaranty in which the guarantor is the primary obligor on the debt. Performance guaranties are a type of guaranty that ensures that a certain task or obligation will be executed according to a specific standard.

A Guaranty That Covers All Future Obligations of the Primary