guarantee letter

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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Satyendra Pathak Doha In a major step towards attracting more foreign investment to the local market, Qatar Central Bank (QCB) is all set to adopt and circulate the unified form of the Demand Guarantee Letter soon.
ICC Qatar Banking Commission vice chairman Ghassan Azar delivers a presentation during a seminar on the Demand Guarantee Letter, which was organised by ICC Qatar in Doha
A guarantee letter was sent to the Armenian side for its participation in the 53rd meeting of the General Assembly of the Parliamentary Assembly of the Organization of the Black Sea Economic Cooperation (BSEC) in Baku, Secretary General of the BSEC PA Asaf Hajiyev said.
The first loan was finally approved after the government decided to back it with a government guarantee letter signed by former Finance Minister II Datuk Seri Ahmad Husni Hanadzlah, while the second loan was backed by a government guarantee letter signed by Najib who was then both prime minister and finance minister.
Hontiveros said patients who are members of the Philippine Health Insurance Corp., Social Security System and Government Service Insurance System may secure a guarantee letter from any of these agencies in lieu of a mortgage or guarantee from a co-maker under the proposed legislation.
I submitted all the documents at FAB's Mirdif branch in Dubai, including a guarantee letter and manager's cheque, on January 31.
"The OVP signed a memorandum of agreement with PGH in order to give a guarantee letter directly from the PGH," Robredo's spokesperson Georgina Hernandez said in Filipino.
Dadalin ang reseta mula sa doktor bagong reseta, iva-validate natin iyan at bibigyan natin ng guarantee letter sa iba't ibang mga botika.
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.
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?
In this case Tele2 was required to provide a parent guarantee letter to the Post Office by 25 December 2003.