about consumer creditis. purpose is to give a brief fact set dealing with the differences between surety and guaranty regarding to the below questions

Bud is unable to obtain a loan from a local bank without some form of additional assurance for the bank that the loan will be repaid. Bud comes to you for assistance. You are willing to help Bud, but you wish to protect yourself from liability as much as possible. Would the bank prefer a surety or guaranty? If your oral assurances are enough to solidify the loan, has a surety or guaranty been formed?