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Re: kpf post# 45311

Tuesday, 07/10/2007 4:12:50 PM

Tuesday, July 10, 2007 4:12:50 PM

Post# of 151692
However neither guaranteeing loans, nor granting subsidies nor funding equity makes these entities a lender.


Hummmm, I don't think I agree, since guaranteeing a loan, makes that person, or entity, legally responsible for paying the loan back if the borrower defaults on the loan. So, although no actual money was "loaned" by the government, what the government "loaned" AMD, was the legally binding promise to pay that money back. Since "Lending" things is not restricted to money, It seems that makes the government a "Lender" to me smile


http://www.treasurydirect.gov/bt/opd/opdGlossaryOfTerms.htm
Loan Guarantee - Any Guarantee, insurance, or other pledge with respect to the payment of all or part of the principal or interest on any debt obligation of a non-Federal borrower to a non-Federal lender, except for the insurance of deposits, shares, or other withdrawable accounts in financial institutions.
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