### Question
How is the term guarantee defined?


### Answer
The term **guarantee** is defined in *12 U.S.C. § 4713a* as the following:

> a written agreement between the Secretary and a qualified issuer (or trustee), pursuant to which the Secretary ensures repayment of the verifiable losses of principal, interest, and call premium, if any, on notes or bonds issued by a qualified issuer to finance or refinance loans to eligible community development financial institutions

#### Citation:
  - *12 U.S.C. § 4713a*
  - Heading: **CHAPTER 47-COMMUNITY DEVELOPMENT BANKING > SUBCHAPTER I-COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS**

