bank guarantee
An undertaking by a bank to cover a debt or risk on a transaction. This may sometimes be used as an alternative to a company offering security for a debt itself although banks usually will require security over the company's assets so obviating this benefit.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • bank guarantee — ➔ guarantee2 * * * bank guarantee UK US noun [C] ► BANKING, FINANCE an agreement made by a bank or other financial organization to pay a debt if the person or company who owes the money cannot pay: »A bank guarantee gives you extra authority when …   Financial and business terms

  • bank guarantee — An undertaking given by a bank to settle a debt should the debtor fail to do so. A bank guarantee can be used as a security for a loan but the banks themselves will require good cover in cash or counter indemnity before they issue a guarantee. A… …   Big dictionary of business and management

  • Bank Guarantee — A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. A bank guarantee enables the customer (debtor) to acquire goods, buy… …   Investment dictionary

  • bank guarantee — noun Etymology: bank (IV) : a statement issued by an importer s bank guaranteeing the payment of drafts to the exporter …   Useful english dictionary

  • bank guarantee — collateral provided by a bank …   English contemporary dictionary

  • bank guarantee fund — ➔ fund1 * * * bank guarantee fund UK US noun [C] BANKING, GOVERNMENT ► money that a government keeps to help banks in financial difficulty: » Deposits held in the bank are covered under the Polish guarantee system by the bank guarantee fund …   Financial and business terms

  • Leased Bank Guarantee — A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount… …   Investment dictionary

  • specific bank guarantee — An unconditional guarantee from the Export Credits Guarantee Department to a UK bank enabling that bank to finance an exporter s medium term credit to an export customer without recourse; the arrangement is known as supplier credit in contrast to …   Accounting dictionary

  • specific bank guarantee — An unconditional guarantee from the Export Credits Guarantee Department to a UK bank enabling that bank to finance an exporter s medium term credit to an export customer without recourse; the arrangement is known as supplier credit in contrast to …   Big dictionary of business and management

  • guarantee — gua·ran·tee /ˌgar ən tē, ˌgär / n [probably alteration of guaranty] 1: guarantor 2: guaranty (1) 3: an assurance that a condition will be fulfilled: as …   Law dictionary

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