Guaranty Agreement Law and Legal Definition

According to 13 CFR 107.50 [Title 13 -- Business Credit and Assistance; Chapter I -- Small Business Administration; Part 107 -- Small Business Investment Companies], Guaranty Agreement means the contract entered into by SBA which is a guarantee backed by the full faith and credit of the United States Government as to timely payment of principal and interest on Debentures or the Redemption Price of and Prioritized Payments on Participating Securities and SBA's rights in connection with such guarantee.