Liability arising from guarantees to be deemed indebtedness; method of computing

§ 7. The liability arising from any guarantee of the principal of and\ninterest on indebtedness contracted by a public corporation shall be\ndeemed indebtedness in the amount of the face value of the principal\nthereof remaining unpaid. The liability arising from any guarantee of\nonly the interest on indebtedness contracted by a public corporation\nshall be deemed indebtedness in the amount of the commuted value of the\ntotal interest guaranteed and remaining unpaid, calculated on the basis\nof an annual interest rate of four per centum.\n