Raiffeisen Bank 

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Infoline: 800 900 900

Retention money guarantee

A retention money guarantee is a non-payment guarantee and is a irrevocable obligation of the bank to pay a customer (beneficiary) a monetary amount agreed in advanced in the event that, after receiving the retention money, the supplier (applicant) does not perform its contractual obligations during the guarantee term.

Benefits

  • The guarantee represents quality security for the receivable of a customer (beneficiary) from a supplier (applicant) that it will receive performance from Raiffeisenbank under the guarantee in the event that the supplier does not perform its contractual obligations to the customer during the guarantee tenor 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 retention money guarantee enables a supplier (applicant) to have retention money that the customer releases to it against the submission of a banker’s guarantee before the end of the guarantee tenor.

Issuance of retention money guarantee and performance under guarantee

  • Raiffeisenbank issues a retention money guarantee based on the client’s (supplier's) application up to the amount and with a validity period in accordance with the terms and conditions of the contract between Raiffeisenbank and the client.
  • Together with a request for the issuance of the 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 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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