As "a pledge issued by the Bank at the request of his client (called collateral) to pay a certain amount or met for appointment to someone else (the beneficiary) if asked to do so within the period specified in the letter mentioned in the letter of guarantee, the purpose of the"
Parties to the letter of guarantee, three parties are the customer warranty and the second student, a beneficiary of the guarantee was issued for him and the third is the source of bank security
- Advantages of letters of guarantee
1 - Advantages of letters of guarantee for the customer
Provides a letter of guarantee for the client is an important feature as to avoid freezing of funds as a cash deposit with those who contend with when he entered in tenders or auctions or any other contract with the
2 - Advantages of letters of guarantee for beneficiaries
Represents a letter of guarantee to the Beneficiary a sure guarantee for the implementation of the contract by of ourse upon tender bid because the bank is committed in his immediate repayment unconditionally Once notified repay the
Bank Financial and Banking Sciencesguarantee bank depositsCommercial Bank JobsBanks ,Central Bank
3 - Advantages of letters of guarantee for the bank Source
The issuance of the letter of guarantee by the bank where the banking service commission to the bank as it attracts customers top contractors and companies that serve the Bank in finding appropriate with significant financial benefit from their bank and their dealings with him
- The end of the warranty
- When you have a certain letter of guarantee period expires and the bank is discharged if is received during the duration of the period of
- When the letter of guarantee for certain non-expire validity of the lapse of three years from the date of its creation
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