Conditions for obtaining a bank guarantee

All credit and financial institutions the requirements to obtain a bank guarantee. These conditions may vary depending on the type of warranty. Such guarantees are issued loans, accrual and payment terms of use, security and target.

Commission for issuing the bank guarantee is usually from 1 to 5 per cent annually, depending on its type, amount and pricing of a particular bank.

With regard to the loan guarantees for banks typically require security. As always the best security looks firm undertaking (for example, private or commercial real estate) as well as funds on deposit.
Guarantee under pledge of deposit least risky from the point of view of the Bank, and even get a bank guarantee, giving a guarantee for money is an easier way.

Guarantees (unsecured) empty in fact we have are very rare and are more expensive compared to secured creditors.

Set of documents for obtaining a bank guarantee depends on the specific circumstances of the World Bank, as well as of the legislation when it comes to getting guarantees to meet any special law (most commonly refers to the tender). However, in any case, include:

Application: the application for the issue of a bank guarantee (or form);
All documents of the Organization;
The contract or solicitation or other documents, under the enforcement of warranty obligations required;
List of security documents and the proposed title.
A bank guarantee issued in writing on paper, wet seal of the guarantor Bank and signed by an official authorized to issue guarantees.

A bank guarantee with a limited validity period it specifies the same. It shall be terminated in the following cases:

Warranty has expired;
Has fulfilled its obligations in full to the beneficiary;
Waived under the bank guarantee to the beneficiary in writing and returned to the guarantor.
If the principal does not fulfil its obligation to ensure that it provides to the beneficiary, he delivers a statement demanding implementation to ensure the guarantor and the guarantor Bank must immediately, in time for its implementation. After the implementation of guarantee the guarantor has the right to resort to the master, it is issued to them, and that he will not perform it, get lost on governance. You can view the comprehensive plan of action to ensure a banker.

What are bank guarantees

Now let’s look at the main types of bank guarantees, they are the main applications of this service. Guarantee of payment is Bank guarantees the implementation of a particular principal payment in favor of the beneficiary. Performance bond-bank guarantees the fulfillment of all financial obligations for a specific contract/contract, for example, a number of payments.