Menu
01.07.2024

Adjustments to the GTC counter guarantee and the GTC contract bond insurance

Adjustments to the GTC counter guarantee and the GTC contract bond insurance

SERV's GTC for the counter guarantee (GTC CG) and the GTC for contract bond insurance (GTC CB) have been adjusted slightly:  
 
GTC CG: 

  • Clause 6.3 allows the financial institution issuing the bond to have the deductible secured by currant collateral, without a pro rata transfer obligation in the event of a counter guarantee claim;
  • the term "guarantor" has been replaced throughout by "guarantee-issuing financial institution" in order to avoid confusion with a jointly liable third party; 
  • The option of covering interest exceeding the maximum guarantee amount has been removed; the maximum guarantee amount is always decisive for the counter-guarantee. 

GTC CB: 

  • in line with the provision in the GTC CG, the option of co-covering interest in excess of the guaranteed amount has also been removed;
  • The term "guarantor" has also been replaced by "financial institution issuing the bond". 

The new version of the GTC CG and BG will come into force on July 1, 2024. 
 
The amended GTC can be found at the corresponding products.