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Guarantees

garantijos

A guarantee means a written obligation of the Bank for a certain period of time
to be responsible before the third party (guarantee beneficiary) in accordance
with amount and period indicated in the guarantee document, if the Bank's client
fails to comply or unduly complies with one or more obligations secured by a
relevant guarantee.

 

A guarantee is a way to ensure performance of obligations, but not a method of
settlements.

 

Types of guarantees provided by the Bank:

  • Tender guarantee protects an entity (guarantee beneficiary) calling for tender
    against the risk that a tender participant (customer) fails to comply with tender
    conditions. The tender guarantee offers to the guarantee beneficiary a monetary
    compensation, if the tender participant withdraws from the tender before its
    deadline or if the winning participant refuses to sign the contract or to provide
    a performance guarantee (if it is mentioned in the tender guarantee).
  • Contract performance guarantee strengthens the obligation assumed by
    the seller / contractor (client) against third parties (guarantee beneficiary s) in
    accordance with the signed agreements. The guarantee of this type is intended
    to protect interests of the buyer / customer (guarantee beneficiary) and to
    ensure that the seller / contractor (client) will supply goods or provide
    services in accordance with the conditions and within the time limits set out in
    the agreement in question. The contract performance guarantee guarantees
    the buyer/ customer (guarantee beneficiary) a monetary compensation, if the
    seller / contractor (client) fails to fulfil its obligations under the agreement.
  • Advance payment guarantee ensures that the Bank will compensate to the
    guarantee beneficiary all the money paid in advance (advance payment), if the
    client would fail to ship the goods or to comply with other contractual obligations.
  • Payment guarantee ensures a guarantee beneficiary duly payment for goods
    shipped, works performed, or services provided. Usually the guarantee
    beneficiary must not only make a claim, but also provide the Bank with
    supporting documentation (such as commercial invoice, bill of lading) proving
    that it has fulfilled its contractual obligations, and the buyer failed to paid for
    them.
  • Customs guarantee is a written Bank’s commitment, which amount and
    terms are specified in the guarantee document, to be liable against the relevant
    customs territorial division regarding tax liabilities of the client arising from the
    import, export, transit, and warehouse operations.
  • Letter of guarantee by LINAVA (Lithuanian National Road Carriers
    Association) is issued (given) to the clients (carriers), who are participants of
    TIR guarantee system, i.e. to the clients, who use an international customs
    transit system (TIR) when carrying goods by road.

Depending on a particular transaction, other types of guarantees are also available.

 

The Bank provides guarantees after making a deposit of clients’ funds into an
account specially opened for that purpose or after pledge or mortgage of client’s
real estate or other property. The real estate or personal property offered for
mortgage must be evaluated by independent property evaluators. In this case,
the client is provided with a credit line intended for provision of guarantee.

 

How to get a bank guarantee?

If you have decided to use a Bank guarantee, please call the information line 
and arrange for a meeting with a Bank specialist or fill in the application and
arrive at the nearest Bank's branch, customer service centre or subdivision
for a consultation. Please be sure to bring the documents indicated in the
credit application.

 

Fill in the Guarantee Application

 

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