Suretyship     Guaranty    
Purpose     Insure  the  payment  of  the   Insure  the  solvency  of  the  principal  debtor    
debt/performance  of  the  obligation  of  
the  principal  debtor    
Obligation     Surety  will  pay  if  the  debtor  does  not   Guarantor  will  pay  if  debtor  is  unable  to  pay    
pay    
Nature  of  Liability     Direct,  primary,  and  absolute  liability   Enjoys  the  benefit  of  excussion;  creditor  must  first  exhaust  all  
to  the  creditor     properties  of  the  principal  debtor  and  resort  to  all  remedies  
against  the  principal  debtor  before  going  after  the  guarantor.    
Debtor’s  Solvency     Obligated  to  pay     Debtor  must  be  insolvent  before  guarantor  can  be  obligated  
regardless  of  solvency  or  insolvency  of   to  pay    
the  debtor;.  The  only  determining  
factor  is  debtor’s  nonperformance    
When  obligation   Obligation  to  pay  arises  when  the   Obligation  to  pay  arises  once  creditor  has  exhausted  all  of  
arises     principal  debtor  defaults  in  his   principal  debtor’s  property  and  after  all  remedies  against  the  
performance     latter  has  been  resorted  to.