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A situation where a creditor requests corporate guarantees of two or more specific corporations on behalf of each other. This is generally used in the case of a parent-subsidiary customer relationship or in the case of multiple related corporations where the credit of one at any time may be marginal and can be strengthened by the credit of the other participating corporations.
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∙ 13y ago
Muneeswaran Thavaman...
A cross guarantee refers to an arrangement between two or more related companies to provide a guarantee to each other’s obligations. Such a guarantee is commonly made among companies trading under the same group or between a parent company and its subsidiaries. A cross guarantee protects the company that incurred a liability (such as a loan) from losing its assets if it defaults on its obligations.
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What is the difference between a corporate guarantee and a bank guarantee?
A Bank guarantee is given by the bank on behalf of it's customer (applicant) to the beneficiary of the bank, that in case of non happening of the particular event which is being covered by that particular guarantee, the bank ( guarantor) will pay the beneficiary an amount, which is mentioned in the guarantee, provided the beneficiary submit the claim under the guarantee in the agreed format and within agreed time. The claim ( compensation) under the bank guarantee will be financial in nature. A corporate guarantee is a guarantee given by the corporate to cover their own exposure or exposure of some other related entity, to the bank. It will also be financial in nature and banks derive an additional comfort from such guarantees when they do their lending to particular borrower.
What is the difference between a corporate guarantee and letter of comfort?
Corporate Guarantee bind under legal obligation in absense of fullfill the commitment of risk/obligation by subsidary company. A comfort letter is an amorphous obligation and is typically given in a situation where a parent company is unwilling to give a guarantee in respect of a subsidiary's liability.
How can cross business strategic fits boost the corporate performance of a diversified company?
anonymously
What is your liability of paying back a business credit card if it had a personal guaranty attached to it and the company has gone out of business?
You are completely liable. That's the point of the personal guarantee. When you agreed to that you destroyed the concept of a corporate shield and are completely liable for the debt.
Is your personal guarantee required for credit if you are a corporation?
Technically speaking, the answer is NO. However, without a solid corporate credit score and at least 2 years in business pledging personally is a way to better increase your chances of being approved as well as expediting the process.
What is corporate guarantee?
A guarantee provided by a corporation, a legal person, is known is corporate guarantee.
What is guarantees?
A guarantee provided by a corporation, a legal person, is known is corporate guarantee.
What is the definition of corporate guarantee?
A Corporate Guarantee is a guarantee in which a corporation agrees to be held responsible for completing the duties and obligations of a debtor to a lender, in the event that the debtor fails to fulfill the terms of the corporate guarantee.It is also known as debtor-lender contract.by shylendri
What is the importance of providing a corporate guarantee with your products?
The customer will feel more obligated to buy the product if it is backed by a corporate guarantee. The guarantee will ensure trust in the customer and will make him more likely to buy your products.
What is the difference between a corporate guarantee and a bank guarantee?
A Bank guarantee is given by the bank on behalf of it's customer (applicant) to the beneficiary of the bank, that in case of non happening of the particular event which is being covered by that particular guarantee, the bank ( guarantor) will pay the beneficiary an amount, which is mentioned in the guarantee, provided the beneficiary submit the claim under the guarantee in the agreed format and within agreed time. The claim ( compensation) under the bank guarantee will be financial in nature. A corporate guarantee is a guarantee given by the corporate to cover their own exposure or exposure of some other related entity, to the bank. It will also be financial in nature and banks derive an additional comfort from such guarantees when they do their lending to particular borrower.
Can a director give a personal guarantee for a loan?
He can but should not. A personal guarantee defeats any corporate shield against seizure of personal assets.
What is the difference between a corporate guarantee and letter of comfort?
Corporate Guarantee bind under legal obligation in absense of fullfill the commitment of risk/obligation by subsidary company. A comfort letter is an amorphous obligation and is typically given in a situation where a parent company is unwilling to give a guarantee in respect of a subsidiary's liability.
Under what circumstances a court may hold shareholders liable for debt of a corporation?
When they personally guarantee corporate obligations or the corporate veil is pierced as a result of the shareholders failing to recognize corporate formalities and treat corporate assets as their own.
How can cross business strategic fits boost the corporate performance of a diversified company?
anonymously
What are the prices for corporate gifts pens?
Corporate gift pens cost $85 on average. These pens can be purchased from the following retailers: Corporate Gift Pens, Colorado Pen, Cross, Paradise Pen, Executive Essentials.
What is without surety?
Surety is a form of guarantee and "without surety" would imply that there is no guarantee in the case of some event occurs. An example would be where a county probate office accepts a bond of a notary public for filing and there is no "corporate" surety or no individaul to guarantee losses caused by acts of the notary that are contrary to law.
What exactly are cross pens?
Cross pens are high quality, refillable writing instruments. The pens carry a lifetime guarantee against mechanical defects; however, they also bear a correspondingly elevated price tag.
