Final answer:
A surety is an individual or corporation that makes payment on an obligation or debt, but is not a party to the original contract that created the obligation or debt.
Step-by-step explanation:
An individual or corporation making a payment on an obligation or a debt, without being a party to the original contract that created that debt or obligation, is known as a Surety. This is not to be confused with a creditor or debtor. A creditor is an entity that lends assets, expecting a rate of return, while debtor is the party who borrows these assets and has the liability to repay. However, in the case of a surety, they are not the original borrower but voluntarily take on the responsibility of repaying the debt, similar to a cosigner. This tends to occur in instances where the debtor may be deemed a risk by the creditor.
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