The rate of borrower default on these loans has also historically been significantly lower than the industry average.

And if a borrower defaults on a loan, banks have a government guarantee that they will get their money back.

Suppliers of credit exact severe penalties if the borrower defaults.

Then you will be given fair warning if the borrower defaults on repayments.

If the borrower defaults and the property is sold at a loss, the insurer will cover the first $33,750 of losses.

In this way, taxpayer funds are only used in the event of borrower default.

All are cut off if one borrower defaults.

The term can be used to refer to a government to assume a private debt obligation if the borrower defaults.

This is so since creditors may legally garnish wages when a borrower defaults.

If the borrower defaults on the loan, this income flow will cease completely.