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Glossary Term: GUARANTEE

Definition(s) for GUARANTEE:

1. ) Also called guaranty, it is an agreement by a person, partnership, or corporation (other than the borrower) to repay a bank loan if the borrower does not pay.

2. ) With Respect To A Student Loan, The Insurance Or Guarantee By The Guarantee Agency Pursuant To Such Guarantee Agency'S Guarantee Agreement Of The Maximum Percentage Of The Principal Of And Accrued Interest On Such Student Loan Allowed By The Terms Of The Higher Education Act With Respect To Such Student Loan At The Time It Was Originated And The Coverage Of Such Student Loan By The Federal Reimbursement Contracts, Providing, Among Other Things, For Reimbursement To The Guarantee Agency For Payments Made By It On Defaulted Student Loans Insured Or Guaranteed By The Guarantee Agency Of At Least The Minimum Reimbursement Allowed By The Higher Education Act With Respect To A Particular Student Loan.


See Also:
EXPORT CREDIT GUARANTEE, FINANCIAL GUARANTEE INSURANCE, LOAN GUARANTEE, LETTER OF GUARANTEE, GUARANTEE AGREEMENTS, GUARANTEE AGENCY
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