Guarantees
Overview
A guarantee by bank (banker's guarantee) is a written undertaking in which we agree to make stipulated payments on your behalf should you fail to fulfil or carry out specified terms of a contract.
Guarantees may also be issued for of the purchase of fixed property and against cash cover.
Our liability is restricted to the payment of a sum of money and under no circumstances do we accept responsibility for the completion of your contract.
Features
Guarantees may be continuing or for a specified period. Wherever possible a definite or determined expiry date or a clause specifying a period of notice or withdrawal is to be included in the guarantee.
The party in whose favour the guarantee is issued is entitled to specify the wording of the document. At your request, we will draft the wording of the document.
Any demands for payment under a guarantee are to be made in writing.
Benefits
You can avoid paying in advance or lodging cash cover to secure a purchase or contract. If cash cover is lodged with us under a pledge you will be paid interest on the investment.
Enables you to bid for contracts which call for guarantees and to buy fixed property where a guarantee is usually a prerequisite
