financial guarantee

  

Definition

Non-cancelable indemnity bond that guarantees timely payment of interest and repayment of principal to the buyers (holders) of a debt security. Similar to under a standby letter of credit, the guarantor pays in case the first party (issuer of the security) fails to do so.

Related Videos




http://www.businessdictionary.com/definition/financial-guarantee.html

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z