Guaranteed Loan: A pledge to cover the payment of debt or to perform some obligation if the person liable fails to perform. When a third party guarantees a loan, it promises to pay in the event of a default by the borrower.

 

Related Words

Guaranteed Loan: A pledge to cover the payment of debt or to perform some obligation if the person liable fails to perform. When a third party guarantees a loan, it promises to pay in the event of a default . . . View Full Definition

Section 502 Loans: A rural housing loan program, administered by the Rural Housing Service (RHS), authorized under Section 502 of the Housing Act of 1949. Borrowers may obtain loans for purchasing or repairing . . . View Full Definition

Farm Ownership (FO) Loans: Subtitle A of the Consolidated Farm and Rural Development Act, as amended, authorizes the Farm Service Agency (formerly fmha) to make direct and guaranteed farm ownership loans to eligible f . . . View Full Definition

Farm Operating (OL) Loans: Subtitle B of the Consolidated Farm and Rural Development Act, as amended, authorizes the Farm Service Agency (formerly fmha) to make direct and guaranteed farm operating loans. Applicants m . . . View Full Definition

Va Loan: A government-sponsored mortgage assistance program administered by the Department of Veterans Affairs. Under the Servicemens Readjustment Act of 1944, eligible veterans and widows or widower . . . View Full Definition

Parallel Loan: A process whereby two companies in different countries borrow each other's currency for a specific period of time, and repay the other's currency at an agreed maturity for the purpose of red . . . View Full Definition

Package Loan: A real estate loan used to finance the purchase of both real property and personal property, such as in the purchase of a new home that includes carpeting, window coverings and major appliances.

Nonrecourse Loans: Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan . . . View Full Definition

Nonproductive Loan: A loan that increases spending power, but is used in business that does not directly increase the economy's output, such as a leveraged buyout loan.

Nonpurpose Loan: A loan with securities pledged as collateral, but which is not to be used in securities trading or transactions.