Nina, Tina, and James: Understanding Loan Guarantor Role

Nina, Tina, and James

Nina wants to borrow money from Tina, but Tina refuses to lend the money unless another person promises to pay the money in case Nina cannot pay the debt. James agrees to pay the debt if Nina does not. James is the _____ in this transaction.

Final answer:

James is the guarantor in the loan transaction between Nina and Tina because he promises to repay the debt if Nina is unable to do so.

Explanation:

In the scenario you described, Nina plans to borrow money from Tina, and in order to secure the loan, James agrees to back up the loan; he is the third party who promises to repay the debt if Nina is unable to. Given this information, James is taking on the role of the guarantor in this transaction. His role as a guarantor is similar to that of a cosigner, as both individuals assume legal responsibility for the repayment of a loan if the original borrower fails to meet their obligations. Typically, guarantors are required when the borrower is not considered reliable or has a poor credit history.

← Real estate commissions what amount should be paid to amy Addressing medication errors at mission street clinic a ceo s guide →

More Posts: