What is it?
A banker's guarantee is a written undertaking in which we agree to make stipulated payments on your behalf if you do not meet or carry out specified terms of a contract. Guarantees may also be issued to buy fixed property and against cash cover.
Our liability is restricted to the payment of a sum of money. Under no circumstances do we accept responsibility for the completion of your contract.
What does it offer me?
- Guarantees may be continuing or for a specified period. Wherever possible a definite or determined expiry date or a clause specifying a period of notice or withdrawal must be included in the guarantee
- The party in whose favour the guarantee is issued is entitled to specify the wording of the document. We will draft the document at your request
- Any demands for payment under a guarantee must be made in writin
- You can avoid paying in advance or lodging cash cover to secure a purchase or contract. If cash cover is lodged with us under a pledge you will be paid interest on the investment
- Enables you to bid for contracts that call for guarantees and to buy fixed property where a guarantee is usually a prerequisite.
What do I need to apply?
- Visit any branch or call your relationship manager.
- A counter indemnity filled in, signed, witnessed and stamped for all guarantees with the name of the oblige (party to whom the money is owed) clearly indicated
- A letter or application form asking us to issue the guarantee
- The guarantee issued varies depending on the specific requirements but is worded in line with the application or/agreement, to avoid any possibility of our involvement in any dispute or whether the principal (customer) has incurred debt of default.