BANK GUARANTEE

Bank guarantee is one of the services provided by banks in the form of guarantees
payment of a certain amount of money that will be given to the party receiving
guarantees, which are guaranteed only if the parties do breach of contract. The agreement could be
into a sale - buy, lease, contract - contracting, chartering, and others - others. Party
that is guaranteed is usually a bank customer who besangkutan, while security
given to other parties who entered into an agreement with the customer
Types and Benefits of Bank Guarantee

Several types of bank guarantees that there are among others:

1. Bank Guarantee Purchase
Bank guarantees given to the supplier / manufacturer as a guarantee of payment for
purchase of goods by the customer or a party that is guaranteed by the bank.

2. Tobacco Excise Ribbon Bank Guarantee
Bank guarantees provided by the customs office as a guarantee of payment ribbon
tobacco excise tax on cigarettes sold by the cigarette manufacturer, in this party
which is guaranteed cigarette factory.

3. Bank Guarantee Duty Suspension
Bank guarantees given to the customs office as collateral
payment of duty on goods released from port property
customer.

4. Tender Bank Guarantee (Bid Bond)
Bank guarantees given to the project owner (bouwheer) for
interests of the contractor / leverensi who will participate in a tender for a project,
in this case the secured party is a contractor / leverensi it. One
requirements for contractors / leverensi to participate in the tender is submitted
bank guarantee.

5. Implementation of Bank Guarantee (Perfomance Bond)
Bank guarantees given to the project owner (bouwheer) for
interests of the contractor / leverensi to ensure the implementation of work / projects
by the contractor / leverensi, in this case the secured party is
contractor / leverensi.

6. Bank Guarantee Advance (Advance Payment Bond)
Bank guarantees given to the project owner (bouwheer) for
interests of the contractor / leverensi of advance payments received by
contractor / leverensi, in this case the secured party is
contractor / leverensi.

7. Bank Guarantee Maintenance (Retention Bond)
Bank guarantees provided by the project owner (bouwheer) for the benefit of
contractor / leverensi to ensure the maintenance of the project that has been
completed by the contractor / leverensi.

While the benefits include:
1. acceptance of administrative costs (fees / komosi) which is a fee-based
income for banks
2. precipitation storjam fund which is a cheap funding for banks
3. provide services to its customers so that customers become more loyal
to banks