0
Guarantor
– The Bank who gives the guarantee
Applicant
– The Company on whose behalf the guarantee is given
Beneficiary
– The Company on whose favor guarantee is given
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is a bank guarantee with cash margin?
A bank guarantee is given to the customer to perform specific actions of a contract. When there is a cash margin involved, the money will be returned to the customer once the original bank guarantee is completed.
How many parties involved in general check?
there are three parties. The drawer, the one who The drawee bank, who issued the check and the payee, the one who is entitled to own the check.
What happened to Guarantee Bank and Trust Co in Dallas Texas?
Nothing. I believe it's Guaranty Bank not "Guarantee Bank."
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 somebody go after your joint bank account in Maryland to collect a debt from just one person?
Yes. A joint bank account is an equal property of all the parties involved in the joint account. So if one of the parties who jointly hold an account owes a debt to the bank, the bank can lay claim to the cash he/she has in an account they jointly hold with another person.
What is a bank guarantee with cash margin?
A bank guarantee is given to the customer to perform specific actions of a contract. When there is a cash margin involved, the money will be returned to the customer once the original bank guarantee is completed.
What is bank guarantee?
Bank guarantee means that the bank opens a written certificate to the beneficiary at the consignor's request. As the guarantor, bank has the responsibilities to handle the debt or obligations instead of the consignor. The rights and obligations of both parties would be prescribed by the contract.
How many parties involved in general check?
there are three parties. The drawer, the one who The drawee bank, who issued the check and the payee, the one who is entitled to own the check.
What is the difference between a bank guarantee and a letter of credit?
While both being non-funded or contingent facilities i.e. they depend on the happening of a certain event, the basic difference between the two is that of the parties involved. In a bank guarantee, three parties are involved; the bank, the person to whom the guarantee is given and the person on whose behalf the bank is giving guarantee. In case of a letter of credit, there are normally four parties involved; Issuing Bank, Advising Bank, the applicant (importer) and the beneficiary (exporter). While appreciating the above, a more comprehensive response follows: A letter of credit is an obligation taken on by a bank to make a payment once certain criteria are met. Once these terms are completed and confirmed, the bank will transfer the funds. This ensures the payment will be made as long as the services are performed. A bank guarantee, like a line of credit, guarantees a sum of money to a beneficiary. Unlike a line of credit, the sum is only paid if the opposing party does not fulfill the stipulated obligations under the contract. This can be used to essentially insure a buyer or seller from loss or damage due to nonperformance by the other party in a contract. For example a letter of credit could be used in the delivery of goods or the completion of a service. The seller may request that the buyer obtain a letter of credit before the transaction occurs. The buyer would purchase this letter of credit from a bank and forward it to the seller's bank. This letter would substitute the bank's credit for that of its client, ensuring correct and timely payment. A bank guarantee might be used when a buyer obtains goods from a seller then runs into cash flow difficulties and can't pay the seller. The bank guarantee would pay an agreed-upon sum to the seller. Similarly, if the supplier was unable to provide the goods, the bank would then pay the purchaser the agreed-upon sum. Essentially, the bank guarantee acts as a safety measure for the opposing party in the transaction. These financial instruments are often used in trade financing when suppliers, or vendors, are purchasing and selling goods to and from overseas customers with whom they don't have established business relationships. The instruments are designed to reduce the risk taken by each party.
What is the difference between Bank guarantee and Counter guarantee?
A bank guarantee is a guarantee issued by the bank to the beneficiary that the bank will make payment in case the bank's customer does not make payment to the beneficiary or in case of non-performance of an obligation or contract. A counter guarantee is a guarantee taken by the bank from the bank's customer which ensures that the bank's customer is liable for any expenses including costs of attorney, any interest on delayed payment, taxes and other levies in case of invocation of the bank guarantee. It is a sort of security for the bank. It is always a good practice for a bank to take counter guarantee from its customer.
Can a bank guarantee under one contract be invoked for another contract between same parties?
In the majority of cases the answer is no. They are two separate agreements that are technically not related.
How to you calculate bank guarantee amount?
To calculate the bank guarantee amount the amount of deposit in the bank account is usually considered.
What happened to Guarantee Bank and Trust Co in Dallas Texas?
Nothing. I believe it's Guaranty Bank not "Guarantee Bank."
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 Bank Guarantee be issued at the request of sub-contractor on behalf of contractor?
Yes, a bank guarantee can be issued at the request of anyone. It is their decision whether they require a guarantee or not.
What is Composite Bank Guarantee?
A composite bank guarantee is when a lending institution agrees to settle a debt if it is not paid. When the debtor fails to pay, the bank covers it.
Can somebody go after your joint bank account in Maryland to collect a debt from just one person?
Yes. A joint bank account is an equal property of all the parties involved in the joint account. So if one of the parties who jointly hold an account owes a debt to the bank, the bank can lay claim to the cash he/she has in an account they jointly hold with another person.
