Video: Surety vs. Guarantor

In this lesson, Nick Palazzolo dives into the distinctions between sureties and guarantors, shedding light on their roles, responsibilities, and the nuances in liability they carry. He elucidates how sureties are directly liable and immediately responsible for fulfilling obligations if the primary debtor defaults, using practical examples such as co-signing a loan or a financial institution acting as a surety. Meanwhile, Nick contrasts this with the secondary liability of guarantors, who are on the hook only after creditors exhaust all efforts to collect from the primary debtor. This explanation aims to ensure clarity on when and how these two distinct parties become liable, and the implications of each in financial agreements.