Protection; assurance; Indemnification. The term is usually applied to an obligation , pledge, mortgage, deposit, lien, etc., given by a debtor in order to make sure the payment or performance of his debt, by furnishing the creditor with a resource to be used in case of failure in the principal obligation . The name is also sometimes given to one who becomes surety or guarantor for another. See First Nat. Bank v. Hollingsworth, 78 Iowa, 575, 43 N. W. 536, 6 L. B. A. 92; Storm v. Waddell. 2 Sandf. Ch. (N. Y.) 507; Goggins v. Jones, 115 Ga. 596, 41 S. E. 995; Jennings v. Davis, 31 Conn. 139; Mace v. Buchanan (Tenn. Ch.) 52 S. W. 507.
Black’s Law Online Dictionary
