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Multilateral Investment Guarantee Agency
2 reference results for: Guarantee
Columbia Encyclopedia
Multilateral Investment Guarantee Agency (MIGA), specialized agency of the United Nations. Formed in 1988, with headquarters in Washington, D.C., it is a member of the World Bank Group (see International Bank for Reconstruction and Development) and membership in the MIGA is open to all World Bank members. The agency, which has 154 member nations, encourages foreign investment in developing countries by providing political-risk insurance, protecting investors against losses resulting from such noncommercial risks as transfer restriction, expropriation, breach of contract, and war and civil disturbance. In addition, the agency provides information on investment opportunities and technical assistance to investors and member states; it also mediates investment disputes and administers claims. As of 2001, MIGA had issued more than 500 guarantees, providing more than $7.7 billion in coverage, and facilitating nearly $39 billion in investment.
The Columbia Electronic Encyclopedia Copyright © 2004, Columbia University Press.
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Wikipedia
A surety is a person who agrees to be responsible for the debt or obligation of another. Additionally, the situation in which a surety is most typically required is when the ability of the primary obligor or principal to perform its obligations under a contract is in question, or when there is some public or private interest which requires protection from the consequences of the principal's default or delinquency. In most common law jurisdictions, a contract of suretyship is subject to the statute of frauds (or its equivalent local laws) and is only enforceable if recorded in writing and signed by the surety and the principal.

If the surety is required to pay or perform due to the principal's failure to do so, the law will usually give the surety a right of subrogation, allowing the surety to "step into the shoes of" the principal and use his contractual rights to recover the cost of making payment or performing on the principal's behalf, even in the absence of an express agreement to that effect between the surety and the principal.

The act of becoming a surety is also called a guarantee. Traditionally a guarantee was distinguished from a surety in that the surety's liability was joint and primary with the principal, whereas the guaranty's liability was ancillary and derivative, but many jurisdictions have abolished this distinction.

In the United States, under Article 3 of the Uniform Commercial Code, a person who signs a negotiable instrument as a surety is termed an accommodation party; such a party may be able to assert defenses to the enforcement of an instrument not available to the maker of the instrument.

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Last updated on Sunday May 11, 2008 at 21:41:39 PDT (GMT -0700)
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