Its purpose is to deter -- to compel respect for the constitutional guaranty in the only effectively available way -- by removing the incentive to disregard it.
This lending niche caters to those with lower down payments and income, as opposed to conventional loans, which have no government provided mortgage guaranty insurance.
The council bowed to the committee and issued a guaranty certificate transferring the unimpeded right to negotiate thereby rendering itself incapable of action.
A guaranty fund system also exists for the life, health and annuity insurance industry, but it operates independently from the property and casualty system.
