After a specific number of months the loans went to default and the banks then requested payment from the Government under the guarantee program.

Any cash shortfall would have to be covered by the guarantee programs, which experts doubt have the wherewithal to handle an onslaught.

By the late 1970's, almost all states established guarantee programs for property-casualty insurers.

A.T.&T. introduced its guarantee programs, company officials said, as a way of defending the company's leadership position in long-distance communications.

He also said it was difficult to decide just which administrative costs should be included in estimates for the guarantee program.

Thus, the only Middle East country that might benefit from a guarantee program is Israel.

Last year, the entire guarantee program ran on less than $50 million.

The law, which was signed by the president on Sept. 22, created a board to administer the guarantee program.

He attributed much of the progress to the guarantee program.

At most community colleges, the guarantee program applies only to graduates of occupational programs like office technology or medical technician.