Guarantee

1. Debt - trade finance - verb.

To assume the liability for debts of another in the event of the other's default.

2. Debt - trade finance - noun.

The undertaking so given.

In English law, a stronger form of security than a guarantee is a bond, a bond being a direct primary obligation from the issuer of the bond, such as a bank or insurance company.

3. Trade finance.

An alternative name for a bond, issued for example by a bank or insurance company.

4. Manufacturers and suppliers.

A manufacturer's or supplier's formal promise about the quality or performance of goods, usually given for a pre-defined period after purchase.

Also known as a 'warranty'.

See also

• Accommodation finance
• Bid bond
• Bond
• Contingent liabilities
• Counter-indemnity
• Default
• Downstream
• Guarantee line
• Guarantor
• Indemnity
• Limited liability
• Performance guarantee
• Security
• Trade finance
• Upstream
• Warranty

Other links

Bank guarantees, letters of credit and performance bonds, The Treasurer 2013