As the practice shows even the perfectly drawn agreement cannot protect you from failure to implement the undertaken liabilities by the counteragents. How the financial interests of the parties participating into the civil legal deals might be protected? The Bank guarantee of JSC Bank VTB (Georgia) is the way to do so.
What is the Bank guarantee?
Bank guarantee is the irrevocable obligation of a bank to pay a sum of money in the event of nonperformance of the obligations of third party. Bank guarantee is the independent liability and according to its conditions, the Bank has to pay on first demand provided that the conditions contained in the guarantee are fulfilled.
Bank guarantee is irrevocable — it might not be revoked if there is not foreseen anything other.
While issuing the guarantee Bank checks the goodwill of the client with the due diligence, thus, the Bank guarantee confirms the financial stability of the company as well as its ability to implement the liabilities undertaken according to the contract.
JSC Bank VTB (Georgia) issues the Bank guarantees of all types, local and international, in favor of Beneficiaries located in various countries of the world, and also implements authentication and advising of the guarantees issued by other banks.
The major types of guarantees:
- Performance Bond
With the performance bond the Bank undertakes, at the request of principal, to pay to the beneficiary (buyer or ordering party) the guaranteed amount in the event the applicant has not met or insufficiently fulfilled his contractual obligations.
- Advance payment guarantee
With advance payment guarantee Bank undertakes to repay the advance in the event of nonperformance of contractual obligations bythe principal.
- Tender Guarantee (Bid Bond)
Bank undertakes to pay to the beneficiary in case principal fails to sign the contract and execute tender requirements.
- Payment guarantee in case of non-payment
With the payment guarantee the Bank undertakes, at the request of the principal, to pay to the beneficiary (buyer or ordering party) the guaranteed amount in the event the applicant has not met or insufficiently fulfilled his payment obligations.
- Customs guarantees
Such guarantees are aimed for submitting to customs authorities, to secure principals obligations related to customs clearance of goods.
- Warranty guarantee
Such guarantees are issued to secure principals obligations related to warranty of goods delivered/services rendered.
- The guarantee issued in favor of the Executive Bureau
This type Bank guarantee providesparticipation into the auctions held for purchase of the real estate and the moveable assets.
Terms and conditions:
Direct Guarantees (local)
|Guarantee issuance (non-cash covered)||0.2%-0.35% (min. 30 GEL) + 0.25%-0.65% per month|
|Guarantee issuance (cash covered)||0.2%-0.35% (min. 20 GEL) + 0.25%-0.35% per month|
|Amendment||min. 50 GEL|
|Payment in settlement of a claim under a guarantee||0.08% (min. 50 GEL, max. 100 GEL)|
|Issuance of JSC VTB Bank (Georgia) counter-guarantee towards correspondent bank||0.2%-0.35% (min. 150 USD) + 0.3%-0.45% (min. 50 USD per month)|
|Payment in settlement of a claim under a guarantee||0.2% (min. 120 USD, max. 200 USD)|
|Cancellation of guarantee||120 USD|
|Guarantee advising without financial obligation of JSC VTB Bank (Georgia)|