Comaker Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Comaker, written in plain English, along with examples of how it is used.

What is Comaker?

History and Meaning of Comaker

A comaker, in the context of the law, is a person who jointly signs a legal agreement or contract with another person, promising to share the responsibility for making payment on the due date. Co-making is a common practice in many financial transactions, especially in loans, where the lender requires additional assurance that the borrower will pay back the loan in a timely and responsible manner.

Co-makers are typically close friends or family members who have a well-established level of trust and financial responsibility. The co-maker is equally responsible for paying back the loan, so if the primary borrower is unable to make the payment, the co-maker is expected to pay back the loan in full.

Examples of Comaker

1. John and Jane signed a loan agreement to purchase a new car, and John's father agreed to become a comaker on the loan to help John and Jane secure the loan from the lender.
2. Mary and her sister, who co-own a small business, both signed a lease agreement as comakers to rent an office space and share the expenses.
3. After losing his job, Bill asked his neighbor to become a comaker on his mortgage to help him avoid foreclosure.

Legal Terms Similar to Comaker

1. Cosigner: A cosigner is similar to a comaker, in that they both guarantee payment of a loan. However, a cosigner usually has a lesser obligation to make payments and is usually only contacted after the primary borrower defaults on payments.
2. Guarantor: A guarantor is a third party that agrees to be responsible for payment of a loan or lease in the event that the primary borrower defaults.
3. Surety: A surety is similar to a guarantor, but they have a greater legal obligation to repay the debt if the primary borrower fails to do so.