The definition of surety is the guarantee that tries to guarantee the effective fulfillment of an obligation. The concept of surety is used mainly in two senses, as a personal guarantee and as a real guarantee.
In the case of the first term, the bond ensures the fulfillment of a debt or a obligation through the existence of a guarantor, who is a third person totally unrelated to the debt, who does not present any type of link with either the person who lent the money or the person who received it. He guarantor guarantees the effective fulfillment of the bond, and in the event that the debtor cannot fulfill his obligation, he himself would undertake to assume it.
In the case of collateral, used mainly in the legal field, the concept of surety refers to the delivery of an amount of money as collateral to ensure compliance with a series of obligations. Examples of surety bond is the payment of a fee when renting a home in order to guarantee the payment of rents. In many cases, that deposit would be returned to the tenant once they deliver the keys to the property and they do not see any damage. And the fact is that the breach of the established conditions will cause the creditor to keep the amount of the bond to compensate the damages suffered.
In law, a bond is usually provided as a way to guarantee that the accused of a crime does not intend to flee from justice.
Classes of surety
There are several types of bonds, as you can see below:
- Conventional bond: it arises with the will between the creditor and debtor.
- Legal bond: it is granted when a legal provision is updated that provides the must to ensure a non-financial obligation that comes from a voluntary act or by provision of the law.
- Judicial bond: claimed by the judges based on provisions of the Procedural Code in order to ensure the possible damages that the measure could cause.