A Bank Guarantee is a surety given in writing by the bank to a third party (the 'beneficiary') that is owed money by the bank's customer. The payment is for a nominated amount, and only the beneficiary can demand the payment.
There are no maximum or minimum amounts, and only the bank's customer can request a bank guarantee be created.
The bank is not involved in any contracts between its customer and the beneficiary – moreover, the bank guarantee is not transferrable, is reviewed each year, and its cancellation requires the return of the bank guarantee to the bank. Bank guarantee fees are charged in advance.
Fees and charges may apply.