GUARANTEE OPERATIONS

Čačanska banka carries out successfully all operations relating to issuing and handling of bank guarantees (in dinars and foreign currency) as well as notification and collection of loro foreign currency guarantees. Čačanska banka a.d. Čačak issues all types of guarantees at the request of clients.

 What is a guarantee?

A guarantee is a security instrument, or a legal agreement under which one party (the guarantor) at the request and according to instructions of another party undertakes an independent and irrevocable obligation to pay to the third party (the beneficiary) the guarantee amount provided that conditions stipulated in the guarantee are met.

Who are the parties to a guarantee?

• Principal – the party obliged by the main operation supported by the guarantee
• Guarantor – the party that issues the guarantee (the bank)
• Beneficiary – the party on whose behalf the guarantee is issued
• Super-guarantor / counter-guarantor – the financial institution which provides additional guarantee depending on its role in the guarantee operation

 What are the main types of guarantees?

 The main types of guarantees are the following:

• Conditional / unconditional
• Payment / performance
• Import / export
• Direct / indirect – counter-guarantee / super-guarantee
• Independent / accessory
• Performance / bid / advance payment / for settling obligations / for loan repayment

 The following guarantees are most often seen in practice:

• Customs guarantee
• Payment guarantee
• Advance payment guarantee
• Performance guarantee
• Bid bond
•  Loan guarantee, etc.

 What rules should be applied in guarantee operations?
ICC Uniform Rules for Demand Guarantees, 2010 Revision (URDG 758)

Request to issue a guarantee

Contact:
Tel: ++381 32 302 196, 302 174, Fax: ++381 32 348 898
e-mail: dokumentarni.poslovi@cacanskabanka.co.rs