Guaranty. Same as guarantee; an undertaking by one person to be responsible for the payment
of a debt of another or for the performance of a contract by another who stands first bound-to pay
or perform.  A guaranty is always enforceable in accordance with the strict meaning of its terms.
But a guaranty of payment and a guaranty of collection impose very different obligations on the
guarantor. A guaranty of collection is an undertaking by the guarantor that the debt will be paid if
and after the creditor employs all the means within his power to collect it. The guarantor cannot be
held until the principal debtor has been sued and judgment secured against him and an execution
under that judgment has been returned unsatisfied.  But one who guarantees the payment of an
obligation is in default the moment the debt is due and unpaid. For he has not guaranteed merely
that it can be collected through the usual processes, but that it will be paid when due. If it is not so
paid suit may be brought against the guarantor, not only before any suit has been brought against
the principal debtor, but even before any demand of payment has been made upon him. If the
principal does not pay promptly when the debt is due, without demand, the guarantor immediately
becomes liable.