Guarantees FAQ - What is the difference between a guarantee and an indemnity?

Date: March 04, 2011

Q. What is the difference between a guarantee and an indemnity?

A. A guarantee is often distinguished from an indemnity in that an indeminity puts the indemnitor on a par with the primary debtor, the creditor can demand payment or performance from the indemnitor at any time, whether the primary debtor has defaulted or not.