Guarantee Fee

Guarantee Fee

A sum paid by the importer to the guarantor, usually as a percentage per annum of the face value of the bills or notes being guaranteed.

Guarantee Fee

A fee charged to holders of a mortgage-backed security by the issuer. The guarantee fee helps cover the issuer's expenses but its most important use is to lessen the issuer's risk of loss or default in case too many of the mortgages underlying the security themselves default.
References in periodicals archive ?
A guarantee fee for each bid amount will cover 2% of total budgeted expenditure excluding VAT, in line with the model C1 of Annex C 13/2015 Declaration and valid for at least thirty (30) days after the end of time power supply requested by the Declaration.
Watt froze that increase and published a request for input in June 2014 on a number of questions related to future guarantee fee policies and implementation.
Legal entities and individuals who will deposit the guarantee fee of 10% of the starting price in the bank account, except for legal entities registered in off-shores or having stakeholders registered in off-shores and having more than 50% of shares in this legal entity, are eligible to take part in the competition.
This competition has pushed the guarantee fee down to only 1% of issuance value, far less than the non-performing-loan ratio of 2-3%.
For example, a small business borrowing $1 million dollars to purchase a building through the 7A Loan Program prior to the economic stimulus bill would have paid an SBA guarantee fee of $26,250.
Instead of having to hand over a full five or 10% cash deposit, buyers pay a guarantee fee which is, typically, cheaper than the cost of high street borrowing.
Meanwhile, Gladedale Homes, Britain's largest privately-owned builder after the acquisition of Ben Bailey of Yorkshire, is among the latest firms to sign up with Exchange Bond, which means buyers only have to find a small guarantee fee at exchange of contracts stage, instead of a 5-10% cash deposit.
If you can get the local government to be your advocate and use a "guarantee" company, you may be able to obtain financing locally, though the guarantee fee may increase your borrowing rate by 2 or 3 percent.
However, if a taxpayer enters into a transaction with a profit motive, keeps separate books and records and reports a guarantee fee separately on his or her return, the taxpayer may be able to establish an activity as a trade or business.
Those initial costs may include survey fee,booking fee, arrangement fee and mortgage indemnity guarantee fee.
The CFS Parent PLUS Loan is one of the leading parent loan programs offering tremendous money-saving borrower benefits including 0% guarantee fee, a credit of 3% of the then-current principal balance after 36 monthly payments are made on-time, and 0.
For taking the credit risk, the GSEs receive a guarantee fee, but the credit risk on the MBS is not very great, and the guarantee fees they receive do not add significantly to their bottom line.