Limited Guaranty
Guaranty capped at a specific amount or time.
Detailed Explanation
A Limited Guaranty is a financial guarantee where the guarantor's liability is restricted to a specific dollar amount, a certain percentage of the debt, or a specific time period. Unlike an unlimited guaranty, this protects the guarantor from excessive exposure. It is often used in business loans where a partner wants to limit their personal risk to their share of the company or a fixed sum.