22-01 Guaranty
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<![CDATA[TITLE 22GUARANTY, INDEMNITY, AND SURETYSHIPCHAPTER 22-01GUARANTY22-01-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.A "continuing guaranty" means a guaranty relating to a future liability of the principal<br>under successive transactions which either continue the liability or from time to time<br>renew it after it has been satisfied.2.A "guaranty" means a promise to answer for the debt, default, or miscarriage of<br>another person.22-01-02. Knowledge or consent of principal unnecessary to guaranty. A personmay become a guarantor without the knowledge or consent of the principal.22-01-03. Original obligation sufficient consideration - Exception. When a guarantyis entered into at the same time as the original obligation or at the same time as the acceptance<br>of the original obligation by the guarantee and forms, with that obligation, a part of the<br>consideration to the guarantee, no other consideration is necessary. In all other cases there<br>must be a consideration distinct from that of the original obligation.22-01-04.Guaranty to be in writing - Exception - Consideration need not beexpressed. Except when a guaranty is deemed an original obligation as provided in section<br>22-01-05, a guaranty must be in writing and signed by the guarantor, but the writing need not<br>express a consideration.22-01-05. When a guaranty need not be in writing.A promise to answer for theobligation of another in any of the following cases is deemed an original obligation of the<br>promisor and need not be in writing:1.When the promise is made by one who has received property of another upon an<br>undertaking to apply it pursuant to such promise, or by one who has received a<br>discharge from an obligation in whole or in part in consideration of such promise.2.When the creditor parts with value or enters into an obligation in consideration of the<br>obligation in respect to which the promise is made, in terms or under circumstances<br>which render the party making the promise the principal debtor and the person in<br>whose behalf it is made the debtor's surety.3.When the promise, being for an antecedent obligation of another, is made upon the<br>consideration that the party receiving it shall cancel the antecedent obligation and<br>accept the new promise as a substitute therefor, or upon the consideration that the<br>party receiving it shall release the property of another from a levy under an<br>execution on a judgment obtained upon the antecedent obligation, or upon a<br>consideration beneficial to the promisor, whether moving from either party to the<br>antecedent obligation or from another person.4.When a factor undertakes, for a commission, to sell merchandise and guarantee the<br>sale.5.When the holder of an instrument for the payment of money upon which a third<br>person is or may become liable to the holder transfers the instrument in payment ofPage No. 1a precedent debt of the holder's, or for a new consideration, and in connection with<br>such transfer, enters into a promise respecting such instrument.22-01-06. Acceptance of offer to guaranty required - Exception in case of absoluteguaranty. A mere offer to guaranty is not binding until notice of its acceptance is communicated<br>by the guarantee to the guarantor. An absolute guaranty is binding upon the guarantor without a<br>notice of acceptance.22-01-06.1. When notice of acceptance to guarantor or surety required. Repealedby S.L. 1989, ch. 296, </p>
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