parent guaranty
USA
downstream guaranty, Also known as a parent guaranty.
A guaranty whereby a parent company, as guarantor, assumes the responsibility for the payment or performance of an action or obligation of its subsidiary by agreeing to compensate the beneficiary in the event of such non-payment or performance.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • downstream guaranty — USA downstream guaranty, Also known as a parent guaranty. A guaranty whereby a parent company, as guarantor, assumes the responsibility for the payment or performance of an action or obligation of its subsidiary by agreeing to compensate the… …   Law dictionary

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