Bank Guarantee

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Bank Guarantee

A promise made by a bank to provide payment to another bank or lender on a bond, loan, or other liability in the event of default. Banks often make guarantees on behalf of certain clients to promise payment on loans. Bank guarantees reduce the risk to loans and liabilities and usually improve the credit agency ratings of bonds.
References in periodicals archive ?
These bank guarantees remain in force till delivery of the vessels.
Utilising the blockchain for bank guarantees is believed to reduce risks.
1 tax code of the russian federation, the list of banks that meet the requirements for acceptance of bank guarantees for tax purposes.
Summary: Bank guarantees of 43 companies used to settle dues to 13,616 workers since 2010
Late last year, International Passenger Protection Ltd (IPP), along with local partner Orient Insurance, introduced the Default Insurance Policy (Dip) -- an attractive alternative to bank guarantees -- to International Air Transport Association (Iata) travel agents in Dubai.
encash the bank guarantees to be furnished by Roy in case he defaults in paying the two instalments.
A PROVISIONAL seizure of two bank guarantees has been quashed by the High Administrative Court.
Under UAE Law, Bank Guarantees are considered a commercial activity regardless of the capacity of the person to whom the Bank Guarantee is issued or the purpose for which it is issued, hence they are governed under the CTL.
Importing companies call for smaller bank guarantees for products that cross the country only in transit.
A year and a half ago, REC cancelled the deal since China Sunergy did not renew the bank guarantees, stipulated by the agreement.
Under a new Afghan-Pakistan Transit Trade Agreement (APTTA), Islamabad has suggested Afghan importers submit bank guarantees on transportation of goods to the landlocked country.
China Sunergy Company Limited (China Sunergy) (Nasdaq: CSUN), a company that produces solar cell products in China, has started legal action with respect to bank guarantees.