guarantee letter

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Guarantee letter

A commercial bank's letter assuring payment of the exercise price of a client's put option.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Apart from the special accommodation, guarantee letters are provided to these patients three to four times a month without the patient or his or her relatives being interviewed by a social worker as required, Maliksi said.
Maliksi said the guarantee letters of the favored patients were usually picked up by their drivers or personal assistants and the requests were received and released on the same day.
In international regulations of guarantee letters, provisions 6-06 to 6-10[11] are related to the review of proceeds assignment regulations.
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).The question here is that when the beneficiary accepts the proceeds assignment, is any right made for the transferee beneficiary on the guarantee letter?
Sayga Flour Mills, which is part of DAL Group, relies on Byblos Bank, Abu Dhabi National Bank and Saudi Sudanese Bank to provide Guarantee Letters for the purposes of importing wheat and other production items.
NCA also adopted two loan guarantee letters dated April 25, 2012.
The defendant is also accused of forging three guarantee letters, which he claimed to have been issued by the Ministry of Finance and the Dubai Municipality (DM).
At present, the government only acknowledges the effect of guarantee letters issued by foreign banks with Taiwanese branches or those ranking among top 1,000 banks worldwide.
But the COA said that based on agreements signed between the lawmakers and PGH, guarantee letters to be secured from the legislators were subject to authentication and validation as to the availability of funds by the hospital's accounting office.