Today’s business environment is unthinkable without the bank guarantee.
It is a hedging instrument which is used in both domestic and cross-border transactions. Whenever there is a need to secure a legally-sanctioned transaction, a bank guarantee may be used.
Within this field, which has exacting legal requirements, Bank Austria can offer you essential professional services.
What is a Bank Guarantee?
A bank guarantee is the irrevocable, autonomous obligation of a bank (= guarantor) towards a specified beneficiary, to vouch for the failure of an agreed performance of its client (= instructing party) by means of transfer of a stipulated sum to the beneficiary on his written demand (= claim for payment).
Bank Austria issues the requested guarantee in favour of your contract partner in Austria. The name of the guarantee to be issued depends on the obligations to be covered by the guarantee.
| A selection of standard texts (in German) for domestic guarantees can be found below. | |
|---|---|
| Advance payment (down payment) guarantee | Tender guarantee |
| Retention money guarantee | Warranty guarantee |
| Performance guarantee | Delivery guarantee |
| Payment guarantee | |
Bank Austria issues the requested guarantee, such as a ‘tender guarantee’ or a ‘performance guarantee’, in favour of your foreign contract partner. It is often necessary to involve a local bank when issuing foreign guarantees, which means that the guarantee is issued by the local bank at the request of Bank Austria (‘indirect guarantee’). Thus the guarantee is subject to the legal regulations of the local bank’s country, and only certain guarantee texts can be used.
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A selection of standard Bank Austria texts for (direct) standard foreign guarantees can be found below. |
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|---|---|---|
| in German | in Englisch | in French |
| Advance payment guarantee | Advance payment guarantee | Advance payment guarantee |
| Tender guarantee | Tender guarantee | Tender guarantee |
| Warranty guarantee | Warranty guarantee | Warranty guarantee |
| Retention money guarantee | Retention money guarantee | Retention money guarantee |
| Delivery guarantee | Delivery guarantee | Delivery guarantee |
| Performance guarantee | Performance guarantee | Performance guarantee |
| Payment guarantee | Payment guarantee | Payment guarantee |
Advising of Guarantees
Bank Austria forwards to its clients, without any obligation on its part, guarantees which have been issued by other banks. We are also pleased to assist our clients in the event that a claim is lodged under the guarantee.
Our Service - Your Benefits
- Upon your request, guarantee orders can be processed within 24 hours of receipt.
- You will be informed immediately in the event claims are lodged under the guarantee.
- We can provide you with specimen texts/templates (e.g., for contract negotiations).
- We can examine draft texts submitted by you for clauses which may be detrimental to you.
- Our guarantee experts can provide you with on-site advice at any time.