§ 14954 Surety Credit Union Guarantees

This law defines a 'surety' as someone who guarantees another person's debt to a credit union without being the borrower themselves, and it allows that surety to act as security for the debt.

Key Takeaways

•A surety is a person who guarantees someone else's debt but isn’t the borrower.
•Sureties can provide security for that debt under the credit union rules.
•This definition is part of the credit union chapter of the law.

Example

Your neighbor promises to pay back your friend's loan if your friend can't make the payments.

Since your neighbor is guaranteeing the loan but isn’t borrowing the money, the law treats your neighbor as a surety, so the credit union can use that promise as security for the loan.

For the purposes of this chapter, a person who is not an applicant for an extension of credit or the creation of an obligation with the credit union but guarantees performance of the underlying obligation is a surety. A surety may act as security pursuant to subdivision (a) of Section 14955. (Amended by Stats. 1985, Ch. 951, Sec. 14.)

This law defines a 'surety' as someone who guarantees another person's debt to a credit union without being the borrower themselves, and it allows that surety to act as security for the debt.

Key Takeaways

•A surety is a person who guarantees someone else's debt but isn’t the borrower.
•Sureties can provide security for that debt under the credit union rules.
•This definition is part of the credit union chapter of the law.

Example

Your neighbor promises to pay back your friend's loan if your friend can't make the payments.

Since your neighbor is guaranteeing the loan but isn’t borrowing the money, the law treats your neighbor as a surety, so the credit union can use that promise as security for the loan.

Key Takeaways

Example

Key Terms

References

§ 14954 Surety Credit Union Guarantees

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References