Irrevocable bank guarantee

Irrevocable bank guarantee In the category Commercial loans Many people are interested in knowledge and learning about many subjects, this knowledge may be vital at some point in your life, attention enough, and dive into more detail more articles and learn more information about Irrevocable bank guarantee.

Irrevocable bank guarantee – this is the most reliable way to ensure commitment. Since it is assumed that the bank (guarantor) vouches for his client (the principal) in front of his client (beneficiary) to the case where the principal can not fulfill its obligations. A irrevocability assumes that the bank in any way be responsible for the obligations, if the principal fails to do so. Revoke the guarantee bank can not, under any circumstances.

What guarantee is irrevocable in nature, should be reflected in writing in the contract. It must be signed director and chief accountant of the credit institution, secured printing.

Advantages irrevocable guarantee for the principal – no need to distract from the market for the contract, which provides performance guarantees bank. Such a guarantee is not difficult to obtain, in addition to commercial banks issued its various funds to support entrepreneurs, guarantee funds. Often, from the principal may not even require the bond or other financial security.

Irrevocable bank guarantee in the first place, it is important for the beneficiary. As it serves as proof of the seriousness of the artist. This means that the contract will be performed, and if the principal problems with its implementation, the obligations in any case the bank will respond. It is because of the high degree of reliability irrevocable guarantee – a mandatory requirement at the conclusion of public contracts.

The tenderer (auction open trades) for public order must provide the enforcement of future commitments. Ensure their implementation, in particular, is designed to bank guarantee under the state contract. Prior to January 1, 2014 all claims on banks, beneficiaries and the safeguards under state contracts regulated by the Federal Law number 94 from January 1, joined the Federal Law number 44, which significantly tightens the requirements. In particular, to issue bank guarantees under the new law will be only those banks which are included in a special list.

Validity irrevocable guarantees (and any other guarantees), as a rule, corresponds to the period of the contract, which is issued under the provision. May also extend the period of the warranty period. Deadline – 1 month after the primary obligation.

Bank’s fee is stated in the contract. This guarantee fee, the fee for opening and maintaining a bank account, payment upon the occurrence of a warranty case, the penalty in case of delay in repayment. If the bank has to pay the debts of the Executive, he is entitled to recover damages in full (paid them the amount plus interest for the diversion of funds).

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