guarantee letter

Guarantee letter

A commercial bank's letter assuring payment of the exercise price of a client's put option.

Guarantee Letter

In put options, a guarantee of delivery of securities made by a bank to a brokerage on behalf of the bank's client. When an investor is writing a put option and does not have the cash available to buy the underlying asset if the option is exercised, the brokerage may require a guarantee letter in order to eliminate the risk that the investor will not be able to buy the underlying asset. See also: Cosigner, Letter of guarantee.

guarantee letter

A letter that is issued by a commercial bank guaranteeing that an investor who is writing a put option will pay the required sum in the event that the put is exercised against the investor.
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The contract performance must be guaranteed by a bank guarantee (original) or insurance company guarantee letter (original) indicating the amount shall not be less than 5 per cent of the total contract price (including VAT).
In civil litigation, following this request of postponing the execution of the local court decision, the sum -- which is usually the amount in dispute and whatever is added to it by the court, such as interest or penalties -- determined by the local court decision or a bank guarantee letter covering that amount must be given to the clerk's office.
issued the Guarantee Letter on 16 September 2014 in favour of the
The issuer bank, designated bank or any other authorized person who acts on the basis of the guarantee letter will not be committed to assign proceeds on behalf of the beneficiary and will be at liberty to accept or reject it (if accepted, it will be sent to the beneficiary in the form of letters, emails, telex or swift messages).
Pakistan has also sent official guarantee letter to Iran so that final shape could be given to gas pipeline project between two countries immediately, sources in Petroleum and Natural resources ministry informed.
TERMS: Cashiers check, or company check accompanied by bank guarantee letter of payment to Wilson Auction & Realty Co.
Bank or credit union guarantor or parent company guarantee letter amount 10% of the contract price including VAT.
Product sales contracts - 7% of the contract price (including VAT) of the bank guarantee or insurance company guarantee letter (applicable if the contract price is greater than or equal to 30 000).
00 with VAT performance guarantee form - the Republic of Lithuania or abroad registered a bank guarantee or insurance company guarantee letter which the service provider is required to submit not later within 10 working days from the date of the contract.
The performance guarantee - the Republic of Lithuania or a foreign bank registered in the Republic of Lithuania or a guarantee or a foreign parent company guarantee letter and surety insurance certificate (policy) a copy of the form set out in Annex 5 of the Treaty, the Treaty forms of security.
Deposits and Guarantees required: The supplier shall, within 10 calendar days of the signing of the contract must submit contract performance guarantee - the Republic of Lithuania or abroad registered a bank guarantee or insurance company guarantee letter.
The provider within 5 (five) working days after the signature of the purchaser of the advance payment bank guarantee or insurance company guarantee letter an advance amount - EUR _______ (____ __ EUR EUR-cents) and the advance payment account.