Debt Guarantee Program [DGP] Law and Legal Definition
This program is a component of Temporary Liquidity Guarantee Program (TLGP) approved by the Federal Deposit Insurance Corporation (FDIC). The program provides a full guarantee of senior unsecured debt issued by eligible institutions after October 14, 2008. Institutions eligible for participation in the debt guarantee program include insured depository institutions, U.S. bank holding companies, certain U.S. savings and loan holding companies, and other affiliates of an insured depository institution that the Federal Deposit Insurance Corporation (FDIC) designates as eligible entities. The FDIC Board adopted a final rule on October 20, 2009, that established a limited six-month emergency guarantee facility upon expiration of the DGP.
