The Definition Of Counter Bank Guarantees
Cons (KBG) Bank guarantee or Bank Guarantee is the counter guarantee to the bank issuer Bank guarantee that the insurance company will pay the damages for claims disbursement of Bank guarantees submitted by the Obligee.
KBG is alternative choices of Bank guarantees which require full collateral.
Counter Bank Guarantees Surety Bond Vs.
KBG has a function and the same benefits with the Surety Bond.
It’s just that, KBG published by bank Surety Bond, while published by the insurance company.
The Type Of Counter Bank Guarantees
KBG can be used for the procurement of goods and services, both construction work or non-construction.
KBG types, including the following:
- Guarantee The Guarantee Supply/Tender (Bid Bond);
- Guarantee Implementation (Performance Bond);
- Advance Payment Guarantee (Advance Payment Bond);
- Guarantee Maintenance/Guarantee Of Retention (Maintenance Bond/Retention Bond);
- Guarantee Of Payment (Payment Bond);
- Assurance Of Reclamation; and
- Other warranties.
The Benefits Of Counter Bank Guarantees
One of the benefits of the KBG is to improve cash flow (cash flow), given the amount of collateral required much lighter if compared to the direct submission of the Bank guarantee (direct) to the issuing bank.
Counter Bank Guarantee Wording
In accordance with the decision letter of the Board of Directors of Bank Indonesia Number 23/88/KEP/DIR of the YEAR 1991, Bank guarantees issued by loading the terms of at least the following:
- The title of the “Bank Guarantee” or “Bank guarantees”.
- Name and address of the bank lenders is the warranty.
- The date of the issuance of a Bank Guarantee.
- Transactions between parties that is guaranteed by the recipient of the guarantee.
- The amount of money that is guaranteed by the bank.
- The start date and the end of Bank Guarantee.
- The affirmation of the filing deadline for claims.
- The statement that the guarantor (bank) will meet the payment by first confiscating and selling the objects the owed debt to pay off pursuant to section 1831 law book of the civil code, or a statement that the guarantor (bank) releasing rights to demand privileged so the debtor objects first seized and sold to pay off her debts pursuant to section 1832 book of civil law legislation.
Bank guarantees can be issued by STATE-OWNED banks and/or private bank registered and supervised by the financial services authority (OJK).