Guarantees and sureties

The guarantee of teh Bank - its surety - is an  irrevocable undertaking to pay a certain amount to a beneficiary in those cases where the customer has not complied with the liabilities to the beneficiary as set out in the guarantee.

The guarantees of the Bank are necessary if the counterparts give no credence to each other. The Bank�s guarantee provides both parties with an additional security.

Guarantees can be used to:

• participate in auctions or the tenders. The Bank guarantees that the customer will neither withdraw its offer nor change its terms and conditions and will enter into an agreement with the organiser of the tender or auction;
• reduce the risks inherent in  international business;
• secure claims in cases when the seller does not fulfil the provisions of the agreement;
• deal with advance payment � to reinforce the contractual liabilities of the counterpart in those cases when the other party does not fulfil their obligations or only partially fulfil them.

The Bank issues the following guarantees:

• Payment Guarantees;
• Advance Payment Guarantees;
• Tender Guarantees;
• Performance Guarantees;
• Guarantees for Warranty Obligations etc.

The Bank issues guarantees to legal entities only by virtue of a Guarantee issuance application submitted by the customer.

In order to obtain the guarantee of the Bank the customer needs to have:

• a current account with DnB NORD Banka JSC;
• security acceptable by the Bank.

The customer is responsible for the performance of guarantee obligations. The beneficiary applies to the Bank only when the customer has failed to comply with the liabilities.

The guarantee of the Bank is based on the agreement entered into by the customer and its counterpart, whereas it is quite independent of such agreement.

Additional information is available on toll-free hotline 8008005 and at branches and sub-branches throughout Latvia.