A factor who charges the factor’s principal with a guaranty commission upon a sale thereby assumes absolutely to pay the price when it falls due as if it were a debt of the factor’s own and not as a mere guarantor for the purchaser, but the factor does not thereby assume any additional responsibility for the safety of the factor’s remittance of the proceeds.

Terms Used In North Dakota Code 3-06-05

  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC