Guaranteed-Amount Equivalent Law and Legal Definition

According to 31 CFR 25.100 [Title 31 -- Money and Finance: Treasury; Subtitle A -- Office of the Secretary of the Treasury; Part 25 -- Prepayment of Foreign Military Sales Loans Made by the Defense Security Assistance Agency and Foreign Military Sales Loans Made by the Federal Financing Bank and Guaranteed by the Defense Security Assistance Agency; Subpart A – General], guaranteed-amount equivalent means:

“(1) With respect to any Derivative which is equal in principal amount to the Private Loan or any Private Loan Portion, that amount of payment on account of such Derivative which is equal to the Guaranteed Loan Amount or the respective Guaranteed Loan Portion Amount, as the case may be; or

(2) With respect to any Derivatives which in the aggregate are equal in principal amount to the Private Loan or any Private Loan Portion, that amount of payment on account of such derivatives which is equal to the Guaranteed Loan Amount or the respective Guaranteed Loan Portion Amount, as the case may be.”