Guarantor or Surety of a Negotiable Instrument

The video tutorial introduces the concept of an accommodation party, which is a party that signs an instrument to provide certainty of payment or collection. It explains two types of guarantees: guarantee of payment, where the guarantor pays if the obligor fails, and guarantee of collection, where the party seeking payment may sue the payor and collect from the guarantor if necessary. The tutorial concludes with a brief mention of future material that will delve deeper into the relationships between these parties.

Describe the difference between a guarantee of payment and a guarantee of collection.

What are the potential outcomes for a party seeking payment if the obligor does not pay?