So, we will consider in this material the word "guarantor" - what it is and how it is applied. There are a lot of uses for this word. In both financial and legal sectors, it is widely used.
Meaning of the word “guarantor”
A guarantor is an entity that ensures the execution or implementation of any activity. They may be a citizen, legal entity (organization), or even the state. The anagram of this word is pomegranate. The word “guarantee” is derived from the word “guarantor” —that is, the exact fulfillment (guarantee) by the principal person of the task taken or of any obligation.
If the obligation cannot be fulfilled, the principal is obliged to advocate for their fulfillment. Let's say a person plans to take a car on credit. To get approval from the bank, he invites friends or relatives to become guarantors. In this case, the guarantors will be the guarantor. This means that if the borrower fails to make the payment of the loan on time, they will assume this obligation . Therefore, in this example, they are the guarantors of timely debt repayment.
Definitions in various dictionaries
So, in order to better understand what a "guarantor" is, we consider the interpretations in various dictionaries:
- In the Ephraim’s dictionary, you can find a fairly generalized designation: it is a certain state, institution or private person who provides guarantees and ensures that they are implemented. It also states that “guarantor” means both animate and inanimate nouns.
- The meaning of the word "guarantor" in a business dictionary is considered mainly from the point of view of lending. That is, it is a surety person who performs duties for the debtor in case of his incapacity and in other moments. "Guarantor" comes from the English word guarantor.
- According to the financial dictionary, the guarantor is a person who provides payment by the debtor on the bill. This means that the guarantor must sign this security with the drawer. Here it can become either an individual or a legal entity.
- What is a guarantor according to Ushakov? In this dictionary, a rather simple interpretation is given - this is a person who in some way gives a guarantee. The word here is derived from the French garant.
The use of the word in the financial sector
What is a guarantor in the field of finance? You can find several uses and stable expressions with this word. For example, a guarantor of an issue is an enterprise whose field of activity is related to finance and lending. These include banks, investment or insurance institutions, as well as brokerage companies. So, they must guarantee the issue (issue) and placement of various securities. As for investment or insurance companies, they can redeem these issued securities for their organizations.
In this industry, there is another use of the word: the expression "bank-guarantor". What can a bank guarantee? It is charged for its customers in case there are problems with the payment of their bills. The institution gives guarantees on behalf of customers, and may also take responsibility for other correspondent banking organizations.
Application in constitutional law
In the field of law, the expression "guarantor of the constitution" can be distinguished . To use this expression, we can indicate that the main task of the authorities is the proper implementation of all the chapters and provisions of the Russian constitution. This phrase appeared in the media at the time of the collapse of the USSR - in 1991. Initially, it was used for the Constitutional Court of Russia, and then it was applied to the president. Thus, one of the tasks of the president, to be the guarantor of the constitution, is specified in the 1993 constitution, in the current edition.
Use of the term as a name
There are many uses of the word "guarantor". In addition to the above, you can add organizations that use this word as a name:
- Pension Fund of Russia on the basis of the Lukoil organization. The head office of the enterprise is located in the capital of the country - in the city of Moscow. This fund is non-governmental, and is also not based on profit-making (non-profit organization).
- Legal navigator, which contains all the laws, codes and other regulatory documents. The directory currently contains more than 3 million legal documents. These data are necessary for the work of any organization in all fields of activity. In addition to the texts of the laws themselves, one can find various judicial practices, as well as comments clarifying certain points of legal documents.
- Based on the Forex currency market, a consulting company has also been separately created. It provides brokerage services and provides information on profitable ways of earning for investors in the field of foreign exchange finance.
In addition to the above, there are many different companies that use this term in their names.
The use of the term "guarantor" in network resources
With the development of information technology, the expression "guarantor of transactions" is gaining more and more popularity. It is a certain service that has a neutral side in relation to the participants in a transaction. The main task of the guarantor here is to monitor compliance with all contract terms.
If there is a process for the sale or purchase of a product / service, the scheme is as follows:
- The guarantor of the transaction receives basic information on the terms of the signed contract.
- The party that purchases the product / service gives the guarantor the total amount of the contract.
- Further, the seller side provides services or transfers the goods in accordance with the terms of the contract.
- The acquirer informs the guarantor that the transaction has been completed and the conditions are met.
- The guarantor transfers the funds to the seller.
There are a lot of types of this service on the open spaces of the network. These programs can be connected, for example, when buying in online stores. And an entrepreneur who has a trading platform can connect this module to it.