Terms of Bank Guarantee
GUARANTEES*
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1. Issuance of guarantees fee
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1.1. Issuance of guarantees* by Ameriabank
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1.1.1. with cash collateral**
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0.3% per quarter*** (charged upfront (lump-sum) for the whole term), minimum AMD 15,000, maximum AMD 500,000 for the whole term
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1.1.2. secured by other collateral**
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0.75% per quarter*** (charged upfront (lump-sum) for the whole term), minimum AMD 15,000 for the whole term
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1.2. Replacement of collateral
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A guarantee issuance fee will be charged in case the cash collateral deposited with the bank is replaced with other collateral. The fee will constitute the difference between the fee already charged for the issued guarantee and the fee for the guarantee secured by other assets. |
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1.3. Amendment of guarantee terms
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AMD 35,000. In case of increase of the guarantee amount or extension of the guarantee validity period, an additional guarantee issuance fee shall be charged pro rata the increased amount/extended period. |
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1.4. Termination of the guarantee upon the client’s instruction
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AMD 25,000
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1.5. Payment on demand
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0.5% of the payable amount, minimum AMD 50,000 |
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1.6. Indirect guarantees (issued with participation of intermediary bank) |
Negotiable |
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2. Service of guarantee issued by other banks for the benefit of the client
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2.1. Issuance of a bank guarantee by Ameriabank under the counter-guarantee of another bank
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Negotiable
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2.2. Advising of guarantee (or advising of amendment of guarantee)
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AMD 20,000
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2.3. Drawing a claim under the guarantee
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AMD 30,000
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Commissions of other banks (other than confirmation), postal/communication costs are charged as per actual amount.
*These tariffs are also applicable to standby LCs.
**In case of termination of guarantee before the due date the commission is not refundable.
***Incomplete quarter stands for a full one. |
ATTENTION! The guarantee issuance fee may be changed by the decision of relevant authorities of the bank. Relevant notice is given to the client on the next business day after approval of the new rates and fees. Calculation and payment of the fees is subject to relevant agreement.
Maximum guarantee limit is subject to the regulatory requirements of the Central Bank of Armenia.
The term of guarantee is based on the term of the underlying transaction and the borrowing capacity of the client.
Eligible currencies are Armenian drams (AMD), Russian rubles (RUB), US dollars (USD), euros (EUR). Other currencies are negotiable.
The bank makes a final decision on guarantee application maximum within 10 (ten) business days upon receipt of the complete set of documents.
The bank guarantee is issued after execution of the security agreement required by the Bank’s decision. Furthermore, in case of pledge of property, the guarantee is provided to the client after proper fulfillment of the following conditions precedent: (i) execution of security agreements pursuant to the legislation of RA, such agreements prepared in form and substance satisfactory to the Bank, (ii) insurance of the collateral (upon the Bank’s request) by an insurance company cooperating with the Bank, (iii) fulfillment of other terms of issuance of the guarantee by the client.
Bank guarantee is provided at the Bank’s head office.
Payment under the bank guarantee is made by the Bank only subject to the guarantee terms and conditions and international rules and based on duly submitted documents, irrespective of the actual relationship between the client and their partner at the time of the payment.
Penalty for non-payment of guarantee fees and commissions when due and non-reimbursement of amounts paid to Beneficiary: 0.13%, accrued to outstanding amount for each day overdue
ATTENTION! IN CASE OF YOUR FAILURE TO REPAY THE AMOUNTS PAID TO THE BENEFICIARY BY THE GUARANTOR WHEN DUE, THE INFORMATION ABOUT IT WILL BE SENT TO THE CREDIT REGISTER.
ATTENTION! IF YOU FAIL TO MEET YOUR COMMITMENTS UNDER THE AGREEMENT AND THE BANK ENFORCES THE PLEDGE TO SETTLE THEM, BUT THE VALUE OF PLEDGE TURNS OUT TO BE INSUFFICIENT TO COVER ALL THE COMMITMENTS ENTERED INTO BY YOU, ANY OTHER PROPERTY YOU OWN MAY BE ENFORCED TO SETTLE THE CLAIM.
ATTENTION! IF YOU FAIL TO MEET THE COMMITMENTS UNDER THE AGREEMENT YOUR PROPERTY MAY BE FORECLOSED IN ACCORDANCE WITH LAW.
Your guarantee application may be rejected if in the reasonable opinion of the bank the resources at your disposal are not sufficient to cover your obligations.