Letters of Bank guarantee

  • Represents a document through which a bank undertakes irrevocably, if a certain individual or legal entity (main debtor) will not pay in due time a certain amount or will not meet certain contractual obligations, to pay in the beneficiary's favour the amount that was not paid.

Trade bill guarantees

  • The promissory note is a title independent from the commercial obligations that determine its issuing, creating distinct rights and obligations, separate from the rights and obligations resulted from the contractual report of commercial / civil right.
  • The trade bill guarantee is a guarantee given by a bank, written directly on the title, through which the guarantor undertakes to pay upon maturity the amount written on the respective title, if the amount is not paid by the guaranteed debtor.
  • The promissory note guaranteed this way represents one of the most secure payment instruments used in international commercial relations. The guarantor is solidary to the promissory note payment, if the payment was not made by the direct obligors, the holder of the promissory note being entitled to initiate the bill of exchange proceedings against the main obligor and/or against the guarantor.

Stand-by Letters of credit

  • Refers to the type of the bank's independent obligation to compensate (to pay an amount of money) to the beneficiary (third party, local or foreign) if the debtor (the Client) does not respect its obligations in accordance with the terms and conditions of the guarantee/agreement/contract.

Import letters of credit

  • Payment instrument frequently used in international commerce.
  • This instrument offers to the seller an irrevocable payment commitment from the bank and, at the same time, it offers the buyer the certainty that the payment will be made only if there are presented documents certifying the delivery of goods /execution of works/services provision, in strict accordance with the terms and conditions of the letter of credit.

Noncash line

  • Intended: to issue letters of bank guarantee, to open Stand-by letters of credit, to open import letters of credit
  • Is a revolving loan intended to issue letters of bank guarantee and letters of bank counter-guarantee, to open Stand-by letters of credit and/or import letters of credit.
  • The advantage of this loan it is the simple and fast use of the line once approved, facilitating in this way the conclusion / unfolding of transactions with business partners.
  • The guarantee structure is flexible, in the case of the collateral deposits being possible to make them once the line is used.