Saturday, 07 July 2018 08:40

Guarantee (Foreign)

Written by
Rate this item
(1 Vote)

A letter of guarantee issued by an issuing bank/guarantor is a written undertaking by the bank to compensate (pay sum of money) to the beneficiary (local or foreign) in the event that the obligator/principal fails to fulfill his/her /its obligations in accordance with the terms and conditions of the guarantee.

Types of guarantee:

  • Bid bond
  • Performance bond
  • Advance payment guarantee
  • Loan guarantee, retention guarantee
  • Customs duty guarantee
Read 3640 times
More in this category: « Money Transfer
© 2021 Coop Bank of Oromia. All Rights Reserved. Designed By HighTech