Accessory Guarantee

An accessory guarantee is a secondary guarantee attached to a primary obligation, such as a loan or contract. It provides additional assurance that the primary obligation will be fulfilled.

Examples of accessory guarantees include co-signers on loans, surety bonds in construction contracts, and letters of credit in international trade. These guarantees ensure that if the primary party defaults, the secondary party will fulfill the obligation.

Accessory guarantees are common in financial agreements, construction projects, and international trade. They offer lenders, contractors, and traders added security.