Words and Phrases - "suretyship"

In finding that a partnership whose business is to guarantee loans cannot claim a deduction pursuant to s. 20(1)(l.1), the Directorate noted that a partnership is not a corporation (given that per s. 248(1), "insurer" has the same meaning as "insurance corporation"). Furthermore, “suretyship is generally distinguished from insurance on the basis that the latter compensates for a loss that may arise from a future and uncertain event, whereas suretyship generally covers an existing obligation to a creditor” – so that the partnership was not providing insurance.