An agreement by a person, partnership, or corporation (other than the borrower) to repay a bank loan if the borrower does not pay. American Banker Glossary
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guaranty guar‧an‧ty [ˈgærənti] noun guaranties PLURALFORM [countable]
• Our corporation is now owned by the federal government, but our debt doesn't carry an explicit government guaranty.
• Guaranty funds provide the best system for protecting policyholders.
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guaranty UK US /ˈɡærənti/ noun [C] (plural guaranties)
► BANKING, LAW a legal agreement in which a person or organization promises to pay back a loan if the person or organization that originally borrowed the money cannot: a guaranty against sth »
The two banks have been able to find investors because they come with solid guaranties against default.
»guaranty fee
Financial and business terms. 2012.