Common use of Types of guarantee Clause in Contracts

Types of guarantee. The seller may request either of the following: (1) The prompt payment guarantee plan. The Agency will guarantee an amount not to exceed three amortized annual installments plus an amount equal to the total cost of any related real estate taxes and insurance in- curred during the period covered by the annual installment; or (2) The standard guarantee plan. The Agency will guarantee an amount equal to 90 percent of the outstanding principal under the land contract.