If the SBA Makes a Loan Guarantee,the Guarantee Is Only

question 2

Multiple Choice

If the SBA makes a loan guarantee,the guarantee is only ________.If the original borrower defaults,the government will repay the obligation up to the ________.

• A)to the borrower; loan balance
• B)to the public at large; percentage of the SBA guarantee
• C)to the lending institution; percentage of the SBA guarantee
• D)to the lending institution; loan balance

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Definitions:

Party to be Charged

The individual or entity against whom legal action is taken or who is required to fulfil an obligation.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the parties involved, to be enforceable.

Legalese

A specialized language filled with legal terms and phrases that is often difficult for the layperson to understand.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by all parties to be enforceable.