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Simple English definitions for legal terms

guaranty fund

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A quick definition of guaranty fund:

A guaranty fund is a special type of fund that is created to help people who have lost their money because a bank has become insolvent. The fund is usually created by collecting money from other banks through assessments. The money collected is then used to pay back the depositors of the insolvent bank. Guaranty funds were created before the federal deposit insurance system was established in 1933, and some states still have them to protect uninsured deposits.

A more thorough explanation:

A guaranty fund is a type of fund that is primarily raised by assessments on banks and used to pay the depositors of an insolvent bank. It is a private deposit-insurance fund that acts as a safety net for depositors in case a bank fails. Guaranty funds were established before the federal-deposit insurance, which began in 1933, and many funds continued until the savings-and-loan crisis in the 1980s.

For example, Massachusetts has a guaranty fund for uninsured deposits (deposits above $100,000) that are not covered by federal-deposit insurance. This fund is used to compensate depositors for their losses in case of a bank failure.

Another example is the client-security fund, which is established by a state or a state bar association to compensate persons for losses that they suffered because of their attorneys' misappropriation of funds or other misconduct.

These examples illustrate how guaranty funds are established to protect depositors and clients from financial losses due to the failure or misconduct of banks or attorneys.

guaranty contract | guaranty letter of credit

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WorthlessAttractiveZombie
14:23
lavender, i looked at the stars last night and they said we're gonna hear from schools this week
heck yeah. I have a feeling we will
I got one answer so far from Mizzou and I was WL'ed but hey it's not the end it's just the beginning
that was Friday
WorthlessAttractiveZombie
14:26
keep swinging until you hear a bell
14:27
im from the future
14:27
kamala wins
14:27
276-262
I think she will too lol
WorthlessAttractiveZombie
14:27
since you're from the future, will fordham release today
14:28
no
WorthlessAttractiveZombie
14:28
fuck alright
14:28
not this week
14:28
dont even get ur hopes up u fool im from the year 2076
TheMidwestMonger
14:28
I'm terrified with how the world will react to Trump losing
WorthlessAttractiveZombie
14:28
damn, next question: should i eat the cheese that's been in my fridge for 3 weeks?
14:28
im pretty sure the world is gonna rejoice??
14:29
yes it is the key to immortality
TheMidwestMonger
14:29
Sorry, I meant the far right and their reaction lol
I live in alabama if she wins it's gonna be crazy here
14:30
same as last time whine that it was rigged go to court lose every time
good thing im bouncing next year
oh yeah
JumpySubsequentDolphin
14:31
why won’t ASU send my scholly info ☹️
WorthlessAttractiveZombie
14:31
they sent mine about 3 hours after i got the initial acceptance video thing
I just wanna hear back from them
14:31
the adcomm office got there at 10 am took a two hour lunch at 12 and left at 3:30 -- trust me im from the year 2076
lol
WorthlessAttractiveZombie
14:32
lavender, they should usually get back within a month of going complete
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