Тема «The Bank Guarantee»

The Bank Guarantee is an irrevocable undertaking of a bank to pay a certain amount to the beneficiary of the guarantee within the specified limits of the guarantee if the bank's customer who has requested the bank to issue such guarantee - the principal - has failed to fulfill his obligations towards the beneficiary.

Bank guarantees may be used for securing performance of obligations under contracts announced by the state, municipal and other institutions (bid (tender) guarantee (bond), performance guarantee, advance payment guarantee, maintenance (warranty) guarantee, etc.), under import/export operations (payment guarantee, performance guarantee, advance payment guarantee, customs guarantee, etc.) as well as for any other obligations acceptable to the Bank.

For the bank to issue a guarantee upon the customer’s request, the customer is to offer to the bank a collateral to secure such a guarantee. Guarantees can be issued with a validity period up to 60 months.

A bank guarantee enables the customer (debtor) to acquire goods, buy equipment, or draw down loans, and thereby expand business activity.

Most used the following types of guarantees:

Tender guarantee - the bank's obligation, provided on behalf of the tenderer (bid) for their organizer to pay a certain sum of money in case of violation of a party to the conditions stipulated by the tender documentation (withdrawal or modification of the proposal at the end of his presentation, failure to sign the party, which became the successful bidder , the procurement contract, failure to provide a party, which became the successful bidder, the necessary assurance that the procurement contract, etc.).

Guarantee the return of the advance payment - the bank's obligation, provided on behalf of the seller of the goods (services), which receives from the buyer's down payment, return the amount of this payment to the buyer in case of default of the seller of his contractual obligations. Guarantee the return of the advance payment allows the seller to obtain pre-financing for future deliveries of goods (services) to the buyer.

Guarantee of payment - the bank's obligation, given on behalf of the buyer of the goods (services), pay the seller money for the delivered goods (services) in the case of buyer's breach of its payment obligations under the contract. Guarantee of payment is a convenient alternative to prepaying for future delivery of goods (services) without the actual removal of circulating assets of the buyer.

Guarantee quality performance of the contract - the obligation of the bank, given on behalf of the seller of the goods (services), to pay their buyer a certain amount of funds in case of breach of the seller of his obligations under the contract.

To obtain a bank guarantee, you have to:

• Hold a Current Account with the Bank,

• Fill in the "Bank Guarantee Application" form (is also available in the Internet banking for business clients)

• Agree with the Bank on the guarantee collateral.