An irrevocable commitment of the bank to pay a sum of money to the Beneficiary, upon latter' request, if the Applicant (Bank' client) has not fulfilled the obligations for which the bank guarantee was issued.
Tender bank guarantee - facilitates participation in the procurement auction confirming the paying capacity and reliability of the Bidder
Performance bank guarantee -ensures proper fulfillmentof contractual obligations related to supply of goods/provision of services
Bank guarantee of payment -ensures payment at maturity of all payments related to commercial contracts
Advance bank guarantee -ensures reimbursement of amounts paid in advance in the event of failure to honor the obligation to deliver the goods/services
Customs bank guarantee -ensures payment of customs duties and other taxes related to import/export
Bank guarantee regarding customs broker services -ensures exercising of broker attributions, complying with customs/fiscal legislation, in operations on behalf of companies and covers broker' obligations towards customs bodies
Banking counter-guarantee -payment commitment assumed to ensure the issue of a bank guarantee, by another bank, in favor of the Beneficiary or some other counter-guarantee; it is used in some countries where only guarantees issued by local banks or banks that meet certain criteria are accepted