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FINANCIAL GUARANTEES
A Financial Guarantee can consist of cash deposits, payments, surety bonds, or other irrevocable agreements to guarantee payment of or completion of construction.
Financial Guarantee contracts require the issuer or surety to make specified payments to reimburse the holder or lender for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument or loan. Financial Guarantees are given to banks, financial institutions and related parties, on behalf of customers to secure loans, overdrafts and other banking facilities.
In other words, a Financial Guarantee Bond is a credit instrument, used to secure a loan, as Financial Guarantees, guarantee loan repayment to the lender. Financial Guarantees are mainly used (in conjunction with a loan)for construction projects; however, Financial Guarantees can be used in any industry, including real estate development and commodity trade.
Financial Guarantee Bonds can play a critical role for borrowers seeking to improve their credit profile. The security that a Financial Guarantee Bond provides to the lender can be a key element to successfully closing a loan facility.
Types of Financial Guarantees:
Construction Risk Management
Ai Surety Bonding provides credit enhancement solutions for public, private and governmental entities, worldwide. Our underwriting partners provide superior credit enhancement expertise and industry knowledge of a broad range of markets. We work in partnership with issuers to develop innovative solutions for complex transactions.
Film Investor Guarantees
Film Production Completion Bonds guarantee that a motion picture will be finished and delivered on time and on budget. We provide a unique financial guarantee that can help attract investors to a film project by guaranteeing the return of their principal investment. |
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