Loan Guarantee Wiki
A guarantee can be limited or unlimited making the guarantor liable for only a portion or all of the debt.
Loan guarantee wiki. A loan guarantee in finance is a promise by one party the guarantor to assume the debt obligation of a borrower if that borrower defaults. Loan guarantees can also be extended to large borrowers for national security reasons to help companies in essential industries or in situations where the failure of a large company will harm the larger economy for example chrysler corporation one of the big three us automobile manufacturers obtained a loan guarantee in 1979 amid its near collapse and lobbying by labor interests. A loan guarantee in finance is a promise by one party the guarantor to assume the debt obligation of a borrower if that borrower defaults.
A loan guarantee in fi nance is a promise by one party the guar an tor to as sume the debt oblig a tion of a bor rower if that bor rower de faults.
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