√ Definition of Bank Guarantee, Purpose, Types and Examples (Complete)
Definition of Bank Guarantee, Purpose, Types and Examples (Complete) – In this discussion we will explain about bank guarantees. Which includes the meaning of bank guarantees, the purpose of bank guarantees, types of bank guarantees and examples of bank guarantees with complete and easy to understand discussions.
Definition of Bank Guarantee, Purpose, Types and Examples (Complete)
For more details, please see the review below carefully.
Understanding Bank Guarantee
A bank guarantee is a guarantee handed over by the bank to certain parties, whether individuals, companies, bodies or other institutions in the form of a letter of guarantee. The purpose of providing a guarantee is that the bank guarantees the payment or receipt of obligations from the party being guaranteed the party receiving the guarantee, if in the future the person being guaranteed does not fulfill its obligations towards the other party in accordance with agreement.
Understanding Bank Guarantees According to Experts
The following is the definition of Bank Garasi according to experts.
1. Bank Indonesia (BI)
The definition of a Bank Guarantee according to Bank Indonesia is a payment guarantee given to the recipient of the guarantee if the guaranteed party does not fulfill its obligations.
2. Malay S.P. Hasibuan (2006)
Definition of Bank Guarantee according to Malayu S.P. Hasibuan is a guarantee certification from the bank to the owner of the project the name of the contractor whose value of this bank guarantee must be exactly the same or must not be different from the value of the project guaranteed.
3. Cashmere (2002)
The definition of a Bank Guarantee according to Kasmir is a guarantee of bank payments to certain parties, whether in the form of companies, institutions, organizations or private individuals. This guarantee or guarantee is intended to ensure that the bank fully guarantees the payment of the obligations of the guaranteed party to the receiving party guarantee. In this case, if the guaranteed party later turns out to be unable to fulfill its obligations to the other party or there is a breach of contract.
4. Lukman Dendawijaya (2005)
According to Lukman Dendawijaya, a bank guarantee is a written statement from the bank regarding the bank's ability to pay the party. thirdly, if special conditions occur, namely that the bank customer cannot make payments according to the agreement or cannot fulfill obligations other.
5. Bank Indonesia Directors Decree No.23/88/KEP/DIR 18 March 1991
The definition of a Bank Guarantee according to the Decree of the Directors of Bank Indonesia No.23/88/KEP/DIR 18 March 1991 is a document issued by a bank (guarantor) in the form of an obligation to pay the party receiving the guarantee (creditor) if the guaranteed party (debtor) breaks his promise or defaults.
Purpose of Bank Guarantee
In general, the purpose of a bank guarantee is:
- As a tool to make trade in goods and services easier or smoother
- Eliminates the guarantee recipient's worry that they will not suffer a loss if the guaranteed party cannot fulfill or is negligent in their obligations.
Apart from the general objectives above, bank guarantees also have objectives, including:
- For bank guarantees, the aim is to provide facilities or make it easier to facilitate customer transaction activities in terms of The operator of a business or project obtains profits from the costs paid by the customer and also the counterparty's guarantee given.
- For collateral holders, the purpose of a bank guarantee is to provide confidence that the collateral holder will not suffer a loss if the party is guaranteed defaults on its obligations, because the guarantee holder will receive compensation from the bank that issued the bank guarantee the.
- Providing a sense of security and peace by making efforts, both for bank guarantees and other parties.
- Developing a sense of trust between the guarantor, the collateral and those receiving the collateral.
Types of Bank Guarantees
The types of bank guarantees are as follows:
1. Bank Guarantee for Tender (Bid Bond/Tender Bond)
There are two types of bank guarantees for tenders, namely:
- Bank Guarantee for domestic tenders
This bank guarantee is a bank guarantee given to the buyer (work provider) for the needs of the supplier/contractor who wants to participate in the foreign tender. - Bank guarantee for foreign tenders
This bank guarantee is a bank guarantee given to contractors who wish to participate in contractor tenders where the contractor or work provider is a foreign party.
2. Bank Guarantee for Receipt of Work Advance Payments (Advance Payment Bond)
This bank guarantee is a bank guarantee given to the contractor (employer) to receive payment in the form of an advance.
3. Bank Guarantee for Work Implementation (Performance Bond)
This bank guarantee is a bank guarantee given to the contractor (employer) in the interests of the contractor as a guarantee for the implementation of the work received.
4. Bank Guarantee for Maintenance (Retention Bond)
Bank guarantee for service airlines (shipping guarantee)
5. Bank Guarantee for Tobacco Excise Stamps
This bank guarantee is a bank guarantee given to customs contractors if necessary cigarette companies to suspend payment of tobacco excise stamps on cigarettes issued by factories for dealers.
6. Bank Guarantee For Trade (Agent, Dealer)
This bank guarantee is a bank guarantee given to trading agents or dealers.
7. Bank Guarantee for Suspension of Import Duty
This bank guarantee is a bank guarantee given by the customs office for the goods owner's need to defer payment of import duty bands.
8. Bank Guarantee for Fixed Asset Purchases
9. Bank Guarantee for the Department of Mines and Energy
10. Bank Guarantee to Guarantee Creditors
11. Bank Guarantee for Purchase/Procurement of Raw Materials
Example of Bank Guarantee
The following are some examples of bank guarantees:
Example of Bank Guarantee for trading
Example of a bank guarantee to guarantee a down payment
Thus has been explained about Definition of Bank Guarantee, Purpose, Types and Examples (Complete), hopefully can add to your insight and knowledge. Thank you for visiting and don't forget to read other articles.
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