Under a guaranty of __________,the guarantor's obligation to pay the lender is triggered automatically when the debtor fails to make a payment when due.

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Under a guaranty of payment, the guarantor's obligation to pay is triggered automatically when the debtor fails to make a payment when due. This means that the lender does not have to take any action to pursue the guarantor for payment – it is an automatic obligation. This is different from a guaranty of performance or collection, which may require the lender to take additional steps to enforce the guaranty. Security is not a type of guaranty, but rather refers to collateral that may be used to secure a loan.

Under a Guaranty of __________,The Guarantor's Obligation to Pay the Lender