Guarantees

HSBC provides its customers with all commonly used types of guarantees. HSBC issues guarantees using a wide range of standard texts which may be adapted to the format requested by the client (in accordance with the Bank's requirements).

Advance Payment Guarantee
Obligation of a Bank (Guarantor) to pay to the Beneficiary an amount not exceeding the amount of the Guarantee, in case of non-performance by the Principal.

Payment Guarantee
Obligation of a Bank (Guarantor) to pay to the Beneficiary an amount not exceeding the amount of the Guarantee, in case the Buyer fails to pay in accordance with the contract terms between the Beneficiary and the Principal.

Bid Bond
Obligation of a Bank (Guarantor) to pay to the Beneficiary an amount not exceeding the amount of the Guarantee, in case of non-performance by the Principal in accordance with the Bid participation conditions.

Performance Bond
Obligation of a Bank (Guarantor) to pay to the Beneficiary an amount not exceeding the amount of the Guarantee, in case of non-fulfilment of the Principal of its obligations under the main contract between the Beneficiary and the Principal.

Customs Guarantee
Obligation of a Bank (Guarantor) to pay to the Customs Authorities an amount not exceeding the amount of the guarantee, in case the Importer does not pay the necessary customs duties. Avoids the need and inconvenience of cash deposits with the Customs Authorities for impending customs duties.

Tax guarantee
Obligation of a Bank (Guarantor) to pay the Tax authorities. For companies undergoing a tax or legal audit, this guarantees non-withdrawal of assets during the audit.

Rent Guarantee
is an obligation of a Bank to pay to the Beneficiary an amount not exceeding the amount of the guarantee, in case the Tenant does not pay in accordance with the terms of rent contract, alternative to placing a deposit.

Guarantee in favour of Minority Shareholders
is an obligation of a Bank to secure Buyer's obligations to buy remaining shares in case the minority shareholder wish to sell shares that they have in their ownership. Required by the companies who are in the process of acquisition of Joint Stock Companies in Russia.