Description
Policy for guaranteeing client obligations to banks, credit unions or contract counterparties. Covers: purpose; maximum guarantee and percent covered; term and maturity; guarantee fee; required security (indemnity agreement, life insurance, guarantor, pre-authorized debit, General Security Agreement with waiver criteria); Letters of Guarantee; borrower obligations and restrictions; monitoring of the guaranteed debt; conditions for honouring a demand; and recovery from the client after payment.
