What does ancillary guaranty mean?

ancillary guaranty meaning in Law Dictionary

relationship where in fact the guarantor is a cosigner of a contract. They have much more rights and may challenge payment demands. They truly are illegal in the US but common in the united kingdom. AKA contract guarantee.

ancillary guaranty meaning in Business Dictionary

Efficiency relationship or any other type of guarantee in which the guarantor efficiently becomes a co-signatory into the underlying contract. And, unlike in a need guarantee (standby page of credit), the guarantor acquires particular liberties underneath the agreement and may challenge the obligee's need for payment for the guarantee sum. Ancillary guarantees are unlawful under US law but are typical in the UK and in other places. Also called agreement guarantee.