About Bank Guarantee
Bank Guarantee is a guarantee in the form of letter issued by a bank which results in an obligation to pay against the party that receive the guarantee (beneficiary), if the guarantor breach the contract (default).
The types and functions of the Bank Guarantee are:
- Tender/Bid Bond
- Performance Bond
- Advance Payment Bond
- Retention Bond
- Payment Bond
- Customs Guarantee Bank
Benefit
- Applicant provide guarantees to guaranteed parties (Beneficiary) that are in accordance with the needs of the transaction to be carried out either to carry out the project or for payment.
- Increase your credibility in carrying out guaranteed transactions (Beneficiary) because you will be supported by a bank that has the best credibility.
Demand Guarantee
A guarantee issued by the bank that result in a bank's obligation to pay the guaranteed recipient (beneficiary) for any default/breach of contract, or the obligation to pay from the guaranteed party (account party/applicant).
The Demand Guarantee refers to the Uniform Rules for Demand Guarantee (URDG) 758.
Standby Letter of Credit
Standby Letter of Credit (SBLC) is a guarantee issued by the bank, which results in the bank's obligation to pay to the guaranteed recipient party (beneficiary) for any default/breach of contract or payment obligation from the guaranteed party (account party/applicant).
The types of SBLC are:
- Standby Bid Bond
- Standby Performance
- Advance Payment Standby
- Standby Counter
- Financial Standby
- Direct Pay Standby
- Commercial Standby
SBLC refers to International Standby Practice (ISP) or Uniform Custom and Practice for Documentary Credit (UCP) 600.
Counter Guarantee
A re-guarantee that is issued if the Guarantor Bank issuing the guarantee instrument (Bank Guarantee or Standby L/C) cannot be accepted by the guaranteed party (beneficiary), so that the guaranteed party requests the guarantee instrument to be re-guaranteed with another instrument issued by other guarantor banks (generally those with international reputation).
Requirements
Requirements that must be completed when applying for Bank Guarantee:
- Have a Maybank Current Account
- Supporting documents for submission:
- Bank Guarantee issuance application form and the underlying of the Bank Guarantee issuance.
- Bank Guarantee amendment application form and underlying (If there are changes in underlying).
- DG/SBLC/CG issuance application form. - Power of Attorney (if any).
- Letter of authorization to debit account.
- Specimen card in the form of signature
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