Bank Guarantee
A bank guarantee, also known as a letter of guarantee or standby letter of credit, is a financial instrument issued by a bank to guarantee payment to a third party if the debtor fails to fulfill their contractual obligations.
Beneficiary
The beneficiary is the party who is entitled to receive the payment under the bank guarantee. They are typically the party to whom the debtor owes money or the party who will receive the goods or services.
Principal
The Principal, also known as the applicant or the debtor, is the party who requests the bank to issue a guarantee on their behalf. They are usually the party who has entered into a contract with the beneficiary.
Issuing Bank
The issuing bank is the bank that issues the bank guarantee at the request of the principal. They are responsible for ensuring that the guarantee is in accordance with the terms and conditions agreed upon between the principal and the beneficiary.
Advising Bank
The advising bank, also known as the confirming bank, is the bank in the beneficiary's country that advises them of the issuance of the bank guarantee. They may also confirm the guarantee, adding their own commitment to honor the guarantee.
Validity Period
The validity period is the period during which the bank guarantee is in effect. It specifies the start and end dates within which the beneficiary can make a claim on the guarantee. Once the validity period expires, the guarantee becomes null and void.
Expiry Date
The expiry date is the last day of the validity period. It is crucial for the beneficiary to make a claim before the expiry date to ensure that they can receive payment under the guarantee.
Performance Guarantee
A performance guarantee is a type of bank guarantee that ensures that the principal fulfills their contractual obligations, such as completing a project or delivering goods or services. If the principal fails to perform as agreed, the beneficiary can make a claim on the guarantee.
Financial Guarantee
A financial guarantee is a type of bank guarantee that ensures payment to the beneficiary if the principal fails to meet their financial obligations, such as repaying a loan or fulfilling payment obligations under a contract.
Counter Guarantee
A counter guarantee is a separate guarantee issued by the principal's bank to the issuing bank. It serves as a guarantee to the issuing bank that they will be reimbursed if they are required to make a payment under the bank guarantee.
Instrument Amount
The instrument amount is the maximum amount that the bank is liable to pay under the bank guarantee. It is usually specified in the guarantee and represents the maximum financial exposure of the issuing bank.
Claim Procedure
The claim procedure outlines the steps that the beneficiary must follow to make a claim on the bank guarantee. It typically includes submitting documentary evidence of the principal's failure to fulfill their obligations and making a written demand for payment.
Legal Jurisdiction
The legal jurisdiction specifies the laws and courts that govern the bank guarantee. It is usually stated in the guarantee and determines which laws will be applied in the event of a dispute between the parties involved.
相关新闻： 联合体开履约保函 预付款保函由谁提供 工程履约保函图片 l履约保函条件 招投标的保函是什么意思 银行保函哪个部门办理好 银行开具建设工程保函 工程类履约保函比例是多少 履约保函配比资金 保险电子保函和银行保函 工程保函行业怎么样啊 银行履约保函样本 英文版 建设工程银行保函有效期 投标保函招标单位会看么 建设银行预付保函 全过程咨询履约保函 银行履约保函退回怎样办理 工程履约保函形式 履约保函格式英语翻译 提供支付保函
