Raiffeisen Bank 

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Guarantee for the return of an advance payment

A guarantee for the return of an advance payment is a non-payment guarantee and represents an irrevocable obligation of the bank to pay a monetary amount determined in advance in the event that, after receiving an advance, the applicant does not perform its contractual obligations to supply the goods or services covered by the guarantee.

Benefits

The guarantee represents quality security for the obligation of a supplier (applicant), and the customer (beneficiary of the guarantee) obtains certainty that it will receive performance from Raiffeisenbank under the guarantee in the event that the supplier does not perform its contractual obligations related to delivery and if the beneficiary asks for performance, in accordance with the conditions of the guarantee.A guarantee strengthens the trustworthiness of the supplier (applicant) in relation to the customer (beneficiary).

A guarantee for the return of an advance payment enables a supplier (applicant) to use funds that a customer provides it with against the submission of a banker’s guarantee.

Issuance of advance payment guarantee and performance under guarantee

  • Raiffeisenbank issues an advance payment guarantee based on the client’s (supplier's) application up to the amount and with a tenor in accordance with the terms and conditions of the contract between Raiffeisenbank and the client.
  • Together with a request for the issuance of a guarantee, the client presents documents containing the conditions and requirements under which the guarantee should be issued.
  • In the contract on issuance of a guarantee or in the loan contract, the client expresses its agreement that if Raiffeisenbank, in accordance with the conditions of the guarantee, is asked for performance under the guarantee, it will provide irrevocable performance in favour of the guarantee’s beneficiary.
  • With regard to the fact that a guarantee represents an irrevocable obligation, Raiffeisenbank cannot change the conditions of the guarantee in a manner unfavourable to the beneficiary of the guarantee or cancel the guarantee without the consent of the guarantee’s  beneficiary.
  • Raiffeisenbank provides performance under the guarantee only in the event it receives an invitation to perform submitted by the guarantee’s beneficiary in accordance with the terms and conditions of the guarantee.

Collateral

The requirements for collateral for a guarantee will be communicated by Raiffeisenbank to the client in connection with its check on the client’s good standing.



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