One way to ensure financial obligations when credit organization at the request of the principal shall make payment to the beneficiary, are bank guarantees.These terms and conditions prescribed in the contract.Bank guarantee can be considered a payment document only if it is made in strict accordance with current legislation.
essence
Contract bank guarantee - one of the most popular financial instruments.Loans organization signing the document, simply confirms the solvency of the performer.But at the same time it guarantees the fulfillment of the obligations.Such additional protection tool gives confidence in the performance of work within a specified time.
Companies often work with state organizations.They usually are long-term cooperation agreements.When activated by a certain sector of the economy, announced a competition for works.One of the requirements that apply to the winner - to provide a full package of documents for registration of bank guarantees.So confirmed the seriousness of intentions.
Why do it?
Issuance of bank guarantees are mostly carried out at the conclusion of contracts for large amounts.In this case, the tool acts as a kind of insurance for all moan deal.The credit institution monitors compliance with the conditions of the deal.And even if a partner goes bankrupt, the beneficiary will still receive a reward.All kinds of bank guarantees and warranties are used to prevent financial risks.
members relations
- guarantor bank (sometimes the insurance company) - an organization which undertakes to make payment to the beneficiary upon the occurrence of certain circumstances.
- Principal - the debtor is the borrower, the person who pays the fee.
- Beneficiary - the beneficiary.
type of bank guarantee
- Unconditional.The Bank is required to transfer funds on the written request of the beneficiary.This application must be made on a strict form.
- statement of the beneficiary must be accompanied by documents which confirm the non-fulfillment of their obligations by the principal.
- Software - is a type of bank guarantee which is issued on bail.
- of obligations and commitments by the principal may be further confirmed by another bank, which is jointly and severally liable to the beneficiary.The transaction may be involved several credit institutions.This type is called a syndicated bank guarantee.It is most commonly used in international transactions.The more banks are involved, the more expensive the service will be.
- If the obligation to take one credit institution, then this kind of transaction is called direct.If the bank on behalf of the principal demands confirmation of the conditions of the transaction from another financial institution, it is counter-guarantee.Such contracts are also increasingly used in international transactions.
The principle of
lender provides funds to the principal.As a confirmation of the commitments is a contract.If the borrower did not return the money, then the requirements of the principal bank.There are sent copies of the documents from the beneficiary.The amount transferred to the account beneficiary.A credit institution may submit to the principal demands recourse nature.The document comes into force upon signature and is valid until the period stipulated timeframe supplies.
stage of registration
1. Presentation predgarantiynogo letter by the borrower with the consent of the guarantor bank to ensure repayment of the loan.
2. Getting approval from the financial institution of the beneficiary.
3. Drawing up and signing of documents.
Nuances
bank guarantee agreements concluded between three parties: the principal beneficiary and the bank.The document fixed the amount of compensation.In case of violation of the obligation to present a bank principal requirement of recourse nature.The amount of remuneration as prescribed in the document in advance.Availability of this item in the contract is beneficial in the first place the principal.The Bank can not provide too demanding or inflate the size of the penalty.To the contract must be accompanied by a notarized copy of the license of a credit institution.
Such contracts - a highly reliable and quick-tools, which bring additional revenue to the financial institution and does not require the diversion of funds from the market.Russian financial institutions to make such documents, provided that the customer has to provide a bank guarantee (securities, commodities and materials, and so on. D.), And with older partners are working on the terms of direct debiting the amount owed from the account.
contract is concluded in written form and must be stamped and signed by the parties.The document should be written that:
- the beneficiary will receive the full amount specified in the contract;
- validity of the document is limited;
- if the beneficiary refuses to receive compensation, it should return a guarantee of the organization that it has provided.
Other information:
- name of the party (the guarantor and principal).
- title documents for the supply of goods.
- maximum payout.
- warranty.
- conditions of termination.
- Terms of payments.
Conclusion
To confirm the seriousness of intentions and minimize financial risks, especially in international transactions, participants can apply for a bank guarantee.A credit institution is obliged to transfer the money to the account of the beneficiary upon the occurrence of certain conditions.Regardless of what kind of bank guarantee is used, the financial institution simply confirms the solvency of the client.Paperwork will cost 1-5% of the transaction amount.Credit is more expensive.And the contractors will go to the partnership, if the client agrees to sign a bank guarantee.
