Acceptable Guarantees Clause Samples
The Acceptable Guarantees clause defines the types of financial or performance guarantees that a party must provide to satisfy contractual obligations. Typically, this clause outlines the forms of security that are considered valid, such as bank guarantees, letters of credit, or insurance bonds, and may specify requirements regarding the issuing institution or the guarantee's duration. Its core practical function is to ensure that the party receiving the guarantee has adequate assurance of performance or payment, thereby reducing the risk of default and providing a clear standard for what constitutes acceptable security under the agreement.
Acceptable Guarantees. Each of the Obligors shall at all times during the Loan Period maintain Loan A fully secured by guarantees acceptable to Eksportfinans.
Acceptable Guarantees. The National Securities Commission may reject any guarantee that does not represent sufficient collateral for the liquidation of the obligations resulted from the OPA, or to demand the replacement of the same when they are granted by credit entities or insurance companies that does not have a proven economic capacity to guarantee the compliance of the obligations originated in the OPA, by others that can comply with it. When the consideration offered consists of money, the guarantee must be constituted for the total amount of the offer and may be in money, through the guarantee of a credit entity, or through a bond issued by an insurance company. When the consideration offered consists of securities, the offeror shall prove the availability of the same and how they may affect on the result of the offering by trusting their custody to a third party not related to the transaction, with specific instructions for their usage as liquidation for the obligations resulting from the OPA. In the case of physical titles, said accreditation may be carried out through their deposit in a clearing corporation or any other entity authorized by the Commission and the delivery of the corresponding certification to the third party not related to the transaction. In the case of titles represented by accounting entries or securities entitlements over the financial assets in custody accounts, the accreditation of their availability could be done through the delivery of the certification issued by the issuer or its representative regarding such rights. When the consideration is offered in portions of cash and securities determined by minimum and maximum percentages, the guarantee shall be constituted as follows.
a) For the cash portion, the amount that represents the maximum amount to be paid;
b) For the securities portion, the values representing the maximum amount to be paid shall be given in the custody of a third party not related to the transaction.