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 ?
The guarantee period can be extended correspondingly, but should not exceed the maximum guarantee period of 7 years, with guarantee fee payable to cover the extension of the guarantee period.
The Finance Division and the Economic Affairs Division (EAD) have refused to back a proposal for waiving the guarantee fee of Rs139 million on a loan taken by the Water and Power Development Authority (Wapda) during the tenure of Pervez Musharraf's government to meet financial obligations of power distribution companies.
ISLAMABAD -- The Finance Division and the Economic Affairs Division (EAD) have refused to back a proposal for waiving the guarantee fee of Rs139 million on a loan taken by the Water and Power Development Authority (Wapda) during the tenure of Pervez Musharraf's government to meet financial obligations of power distribution companies.
It would also consider waiving off guarantee fee for foreign currency loan of $125 million taken by the Water and Power Development Authority from the Standard Chartered Bank Ltd Consortium in 2007.
Fees for the investments range from 20 to 60 basis points (bps); on top of that asset management fee, the guarantee fee is about 90 to 100 bps, he says.
The Ministry of Finance believes these costs, if realised, would be met by a guarantee fee paid by Hellenic Bank to the government, and by income generated by the residual entity.
He quizzed Economy Secretary Ken Skates after Aston Martin disclosed there was a guarantee fee agreement in place between the company and the Welsh Government in a prospectus published in relation to its proposed flotation on the London Stock Exchange.
After audit, the company must transfer the guarantee fee, he said.
In addition to coupon interest, Basware pays an annual guarantee fee to Garantia.
"What's more, the guarantee fee is assessed only on the assets they move to the income segment."
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.
Moreover, a market based guarantee fee will be paid by lenders and the level of guarantee fee will take into account the expectation that the creditworthiness of CPPA will improve in the medium term, guaranteed loans may be denominated in local currency, hence mitigating the FX risk as well as the risk related to market distortion.