A bank guarantee is an unconditional written financial obligation from a bank on behalf of its client (principal) towards the beneficiary to secure non-fulfilment of any (financial) obligations by the principal.
MUFG Bank (Europe) N.V. ("MUFG Bank (Europe)") takes over the payment obligations from the buyer towards the seller if buyer fails to fulfill his financial commitments on the agreed date.
Advance payment guarantee
In case of a (partial) advanced payment of the contract price by the buyer before the delivery of the goods MUFG Bank (Europe) secures repayment of the advanced amount in case seller fails to meet his contractual delivery obligations.
MUFG Bank (Europe) secures payment obligations of rent by the tenant to his landlord.
Bid Bond (Tender Bond)
In case a bid or tender has been submitted by the bidder (seller) and the awarded order is eventually not accepted by the bidder (seller), or the bid has been withdrawn before the tender expiry date, buyer is able to claim the bid amount under the bid bond. A bid bond secures buyer against unqualified bidders.
MUFG Bank (Europe) secures payment for costs that the buyer may incur in case a delivery or service is not executed by seller according to contract and/or on time.
Guarantee for warranty obligations
MUFG Bank (Europe) secures claims by the buyer on the seller in case of possible defects on the goods appearing after delivery.
MUFG Bank (Europe) secures on behalf of their client payment of customs duties towards the Customs Authorities.
MUFG Bank (Europe) secures on behalf of their client payment of tax duties in general (for example unpaid VAT) towards the Tax Authorities.
Missing Bill of Lading guarantee
In case goods arrive at destination and relative Bill of Lading is not available (lost) and goods have to be released, MUFG Bank (Europe) guarantees any claim by the shipping line or company on the buyer for releasing goods without Bill of Lading.