A third party that agrees to be liable to pay a loan only if the debtor actually defaults is a(n)

Name: A third party that agrees to be liable to pay a loan only if the debtor actually defaults is a(n)
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A guarantor is a third party in a loan agreement who agrees to repay the loan if the primary borrower defaults. Unlike a surety, who is equally liable with the borrower from the start, a guarantor's obligation typically arises only after the primary debtor has failed to meet their obligation.

A Third Party That Agrees to Be Liable to Pay