Bank Guarantee is handled by Foreign Trade Department, Corporate Office, Tangal which is the central processing unit. All the branches of KBL will accept Guarantee Application and forward the request to Foreign Trade Department.
This is also commonly called as a Tender Bond or Earnest Money Guarantee. A bond submitted by the applicant as security for accepting a contract on offer by the beneficiary is a Bid Bond.
A guarantee obtained or submitted to ensure goods are supplied and delivered on time, or services are rendered within the stipulated time within the realms of contract is known as a Performance Bond.
The main objective of an APG is to enable the contractor to obtain necessary funds from the beneficiary to make preparation for performance of the contract. The funds so obtained may be used for purchasing machinery, materials, or for hiring laborers etc.
Also known as International guarantee.
A request along with an indemnity by a bank to another bank to issue a guarantee favouring the beneficiary on behalf of its customer (the Principal) with a commitment to pay upon receipt of claim from the issuing bank.