Individual surety bonds represent the original form of suretyship. Becoming involved by suretyship for a reckless speculator, he lost his fortune. Traditionally, a distinction was made between a suretyship arrangement and that of a guaranty. Such a suretyship agreement is entered into between the surety and the creditor. Suretyship was not always accomplished through the execution of a bond. Additionally, Smart-Holding concluded suretyship agreements to $50 million under the company's loans with the banks.