The Office of Thrift Supervision (OTS) is amending its regulations to clarify that a Federal savings association may act as guarantor under section 5(b)(2) of the Home Owners' Loan Act (the ``HOLA''). Additionally, OTS is modifying restrictions on suretyship and guaranty agreements issued under this section. The rule also clarifies that a Federal savings association holds authority to issue letters of credit and makes related technical amendments. OTS is also amending various lending related definitions to either clarify definitions or remove unnecessary or outdated definitions.