Whatever happened to Indemnity Bonds

Purple

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I remember a friend buying a house in Lucan in the mid 90's. The bank insisted that they buy an indemnity bond to cover the risk of negative equity (i.e. the sale price being less than the value of the outstanding mortgage). I think these bonds were quite common for a while, can anyone confirm if this was the case and if so what proportion of houses were covered by them?
 
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