“A guarantor either guarantees payment or collection, depending on the words used. ‘Payment guaranteed’ or equivalent words added to a signature mean the signer will pay the instrument if it is not paid when due without a need for the holder to resort to another party. ‘Collection guaranteed’ means resort must first be had to others.” Fred H. Miller & Alvin C. Harrell, The Law of Modern Payment Systems § 5.02, at 195 (2003).
guarantor of collectibility. One who guarantees a debtor’s solvency and is under a duty to pay only if the creditor is unable to collect from the principal debtor after exhausting all legal remedies, including demand, suit, judgment, and any supplementary proceedings. [Cases: Guaranty 33, 45, 77(2).]
guarantor of payment. One who guarantees payment of a negotiable instrument when it is due without the holder first seeking payment from another party. • A guarantor of payment is liable only if “payment guaranteed” or equivalent words are added to the guarantor’s indorsement. [Cases: Guaranty 35, 45, 77.]
