Bonds, Guarantees & Standby Letters of Credit
Bonds and Guarantees
Bonds and Bank Guarantees are used to secure a wide range of obligations such as the warranty on goods and services, refund of an advance payment, to support a tender or simply in payment of goods.
A guarantee is a payment instrument that is tailored specifically to your individual contract, but which is a payment obligation independent of the contract itself and usually drawn through a simple document evidencing requirement of payment.
Standby Letters of Credit (SBLC)
Standby letters of credit are used widely in place of Guarantees, but are in a standard Letter of Credit format and usually governed by the Uniform Customs and Practice for Documentary Credits (UCP). In common with Guarantees, utlilisation of a Standby Letter of Credit is only intended in the event of non-performance of specified contractual obligations.
*Whether you are a beneficiary of or seeking to have a Guarantee or Standby Letter of Credit issued on your behalf please contact Bank of Ireland to discuss the various options and terms available to you.