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Introduction
Performance guarantee is issued to guarantee the applicant’s due and proper performance of contractual obligations in an underlying contract.
Product Features
1) Mitigate mutual distrust of parties involved in contract.
2) Guarantees due and proper performance of the contract.
3) Ensure due compensation when contract breached.
4) Commonly required in commercial contracts eg. sales and purchase contracts of goods and services, construction projects, etc.
Application requirements
1) Legally registered in Cambodia.
2) Maintain current account with our bank.
3) Companies must posses the proficiency in performance under the contract.
4) A credit facility or at least 100% cash margin or deposits must be provided(must be pre-arranged with the bank).
5) The format of the bankers guarantee that is to be issued must be acceptable to the bank(the format is subjected to review by the bank’s Legal Department).
Application Procedures
1. Applicant submits banker guarantee application form together with the documentary evidence showing the need for the Performance guarantee eg the commercial contract.
2. Applicant remits the cash margin or deposits into the Bank and submits the required documents eg deposit slip or Letter of set-off or Charge documents.
3. The bank evaluates customer and transaction information.
4. The bank reviews the banker guarantee application form, the format of the guarantee and checks the security documentation ie Letter of set-off, Charge documents, etc.
5. The bankers guarantee is issued.
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