APGs | Performance Bonds | Bid Bonds

Issuance of guarantees on behalf of our customers,(contigent liabiliteis).

In recent years,commercial communities have developed a number of payment /guarantee arrangements which is used to secure performance of obligation other than the payment of money.
Happy Happy
A guarantee is a document under seal whereby a bank binds itself to pay a certain sum for the performance or non-performance of its customer.

The Guarantees are Advance Payment Bond (APG),performance boonds,bid bonds.

These names can be used interchangeably.

In each case,the bank gives an undertaking on behalf of its customer to a beneficiary that the bank will make a payment if the customer/contractor defaults in the performance of an obligation and /or other conditions that the contractor must fulfill.

The bank is guaranteeing performance by the customer/contractor

Under an on demand guarantee,it is usually structured that the bank is required to pay if the beneficiary makes a demand,there is no need to prove a breach of the underlying contract.