Contingent Guarantee

Contingent Guarantee

A guarantee made by a third party to the buyer of a good or service stating that the seller will receive payment on time and in the correct amount. If the buyer fails to make the payment, the third party will make payment on his/her behalf. Contingent guarantees, known as letters of credit, have become very common in international commerce, as distance and other factors make it difficult for sellers to establish the credit worthiness of every buyer. See also: Co-signer.
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The rating affirmation reflects the strength of the sovereign's contingent guarantee of RPICAO payments if water utility bill payments to SEDAPAL do not sufficiently cover debt service.
Repayment is also supported by a contingent guarantee of the government of Peru (GOP) through the Ministry of Housing, Construction and Sanitation (MVCS) to provide for any debt service shortfalls.
Oil & gas company Ecopetrol SA (BVC:ECOPETROL)(NYSE:EC)(BVL:EC)(TSX:ECP) reported on Monday the receipt and closing of a contingent guarantee for expansion and modernisation of its USD3.
The IRS apparently views a creditor under a contingent guarantee as having a prohibited interest in the trust.
The rating affirmation reflects Fitch's view of additional reliance on the sovereign's contingent guarantee rather than on the incoming water utility flows.
5 million in cash from SigmaTel for a contingent guarantee made in November 2000 that became payable upon SigmaTel's IPO.
The Belize government provides additional credit enhancement to both tranches with a contingent guarantee of timely payment of principal and interest.
Under the original contingent guarantee provided by the sponsors, SCP's weak financial condition potentially exposed investors to the declaration of a technical event of default and an acceleration by the IFC; the unstructured unsecured bonds rank pari passu with the certificates and contain cross-default provisions.
Under a contingent guarantee provided by the sponsors, SCP's weak financial condition potentially exposes investors to the declaration of a technical event of default and an acceleration by the IFC; the unstructured unsecured bonds rank pari passu with the certificates and contain cross-default provisions.
Mr Truell told The Times the plan would need the backing of the Treasury, as the taxpayer would act as the guarantor, and it would also need contingent guarantees from Tata Steel to stand behind the scheme and the support of the Pensions Regulator.
Afreximbank creates contingent guarantees for projects, and once they are completed the bank agrees to refinance the construction financing partners and provides extra capital for furniture, fittings and pre-operating working capital.
5 million and cancellation of all contingent guarantees provided by Peerless.