Legal Definitions - subsurety

Definition: Subsurety is a person or company that provides a guarantee to pay back a debt if the primary surety is unable to do so.

For example, if a contractor needs to be bonded for a construction project, they may need to provide a surety bond. The surety company may require a subsurety to also provide a guarantee in case the contractor defaults on the bond.

Another example is in the case of a lease agreement. The landlord may require a surety bond from the tenant, and the surety company may require a subsurety to provide an additional guarantee.

These examples illustrate how a subsurety acts as a backup to the primary surety, providing an additional layer of protection for the party requiring the guarantee.