Counter guarantee
A SERV counter guarantee covers the Swiss exporter’s payment obligation to the guaranteeing financial institution. SERV will compensate the financial institution on first written demand if a contract bond is called and the exporter subsequently fails to meet its payment obligations to the guaranteeing financial institution.
The counter guarantee supplements contract bond insurance from SERV and allows exporters to obtain a contract bond from their financial institution more easily. Counter guarantees help exporters conserve cash because they eliminate the need for exporters to post additional collateral for their financial institutions.
- Cover Ratio: 90%, cover up to the full sum guaranteed is possible in justified, exceptional cases.
Product details counter guarantee
Details
If the guarantee is called, the exporter, after settling the guarantee claim of the financial institution, can make a claim under SERV’s contract bond insurance.
Object of cover
At maximum the face value of the contract bond underlying the counter guarantee.
Risks covered
The risk of the Swiss exporter being unable to pay the financial institution is covered if the financial institution has had to disburse the sum guaranteed due to the contract bond being called.
SERV makes payments under a counter guarantee within ten working days after receipt of the financial institution’s written request and the necessary proof in accordance with the counter guarantee declaration.
Liability period
SERV’s liability in relation to the counter guarantee begins on the effective date of the contract bond and when the counter guarantee is received by the financial institution issuing the contract bond. The counter guarantee expires on its surrender, when SERV’s liability is discharged by the financial institution issuing the guarantee or 30 days after the expiry of the contract bond.
Premiums
The exporter is the premium payer and the premium is due in advance. Instalment payments are possible against a premium supplement. The premium for contract bond insurance is generally reduced by the premium for the counter guarantee.
Special provisions
The counter guarantee can only be taken out in connection with contract bond insurance from SERV.
Questions? Contact:
Christian
Hendriks
