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Financial Guaranty Insurance Corporation (FGIC)

Financial Guaranty Insurance Corporation (FGIC) definition - business

Financial Guaranty Insurance Corporation (FGIC)

A private insurer of interest and principal payments on municipal bond issues. As it would with other insurers, the municipality issuing the bond pays the required premium to FGIC in order to obtain a higher rating on the issue. In this way, the bonds can be sold at a lower interest rate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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