Guarantees in Securitisation: A Legal Safety Net (With Strings Attached)

“If they don’t pay, I will.”
That, in a nutshell, is a guarantee under English law – a promise by one party (the guarantor) to step in if another party (the principal obligor) fails to do what they said they’d do. Usually, that’s handing over money – but it might just as easily be a contractual obligation to act (or not act) in a certain way.