The bank bill guaranty (of Italian avallo - "“changes"”, this of Arab hiwala - "“mandate"”, "“changes"”) covers endorsements and warranties and warranties for payment of a bill of exchange, which Kreditinstitut - one speaks in the following for the simplification of bank as comprehensive term both - takes over on behalf one of their customers opposite third. The term bill guaranty originates from the Italian and-stood for the signing of a change by an additional person, who clings with it likewise like the exhibitor of the change.

Kinds of bill guaranty

• Renting bill guaranty: for the security of a lease, those can bail position by the tenant escape.
• Guarantee bill guaranty: Secures the warranty claim of an owner or an investor.
• Pre-payment bill guaranty: Secures the instalment for a supply or an investment.
• Achievement bill guaranty: Secures payments up to the arrival of the commodity or furnishing the achievement.
• Change bill guaranty: , Serves economically for the soil quality improvement of a change and makes possible thereby a cheaper refinancing secures the beneficiary of a change.

Economic meaning for the client

(Bank) the bill guaranty saves liquidity to the client, as itself a bank obligates to guarantee for the case of a failure of a business agreement a financial reconciliation. This leads to the fact that for example pre-payments with pre-payment bill guaranties or guarantee-backkeep the client of the bank, which the agreed upon manufacture achievement has to furnish in former times for the order.

The assumption of bill guaranties represents a granting of credit on the part of the bank, which either when branch limits in the context of other lines of credit is granted or granted separately than credit by way of bank guarantee and besichert by credit collateral.

Economic meaning for the bank

Bill guaranties are considered as contingent liabilities, because they become genuine commitments only if a demand from the bill guaranty takes place. They are proven separately as additive in the balance and load the own capital funds connection of the bank only partly, usually

As remuneration a commission for the validity time of the bank is agreed upon, which is usually clearly under the interest for an appropriate credit.

Legal bases

Bill guaranties are formulated usually written.

Whether it concerns an endorsement or a warranty, is to be examined dependent on the Ausformulierung the document and in individual cases legally.

The legal bases for the endorsement are in the regulations "§"§ to 765 to 778 BGB ("§ 778 BGB Kreditauftrag) as well as in "§"§ 349 to 351 HGB. The endorsement is always accessory, i.e. it depends on the existence and on the range of the principal debt. See in more detail also: Endorsement

The warranty is legally not regulated. This concerns a contractual contract in the sense of "§ 311 BGB, whose contents to a large extent the contracting parties can determine in the context of the freedom of contract. In the foreign business the banks usually avail themselves of the internationally common warranty, which on first requirement and against an explanation of the beneficiary (for example that the customer did not follow his contractual obligations) is payable. Contrary to the endorsement the warranty is an abstract promise to pay and is not from the effectiveness of the commitment of the customer opposite the creditor/warranty-favoured dependently.

Due to the warranty the guarantor has (= the bill guaranty-providing bank).

• to in-be entitled for a future success or
• the guarantee for a future to take over damage not developed yet.

Since the warranty is legally not regulated, it is exclusively based on its text drawing up and can be subjected in the formulations strange legislation.

On international level 1991 the attempt was undertaken to create uniform guarantee conditions compares for this uniform guidelines for warranties: "“Uniform Rules for and Guarantees"” of the international Chamber of Commerce, of Paris - ICC publication No. 458 - www.icc-deutschland.de/icc/frame/publik/t21.html

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