guaranty

An undertaking to answer for the payment of some debt, or the performance of some contract or duty, of another, in case of the failure of such other to pay or perform; a warranty; a security.

Something serving as a security for such an undertaking.

No doubt the city of New York and the State of California contain capital enough for the completion of the entire road,--would subscribe to it, too, upon sufficient guaranties.

An assurance or guarantee.

...He had contemplated the match as the fittest for the heir to England's throne, and one that offered the best guaranty for mutual happiness and a vigorous progeniture.

America has sent us guaranties She will demand that Maximilian Be held but as a prisoner of war.

Alternative form of guarantee.

His imperial majesty likewise guaranties to the king of Prussia the perpetual possession of upper Silesia; and the king guaranties to the emperour the perpetual possession of upper Austria, as soon as he shall have occupied it by conquest."

They are classified as “loans” because they involve traditional market-rate loans, but with one important additional feature: Their payments are guarantied by a financially powerful third party.