Mondial Private Bank (IBU) Ltd., is often asked to provide guarantees or bonds for their customers, who may be importers or exporters, or possibly contractors who have to give some form of undertaking to their counter parties. The Guarantee is a written undertaking from a bank that if a customer does not honor an obligation to perform a particular function or service, the bank will pay over a sum of money on behalf of that customer to a named party.
Bank Guarantees or Bonds can be Conditional or Unconditional. When a guarantee is conditional, then anyone who wishes to claim under that guarantee must fulfill certain conditions before the guarantor is prepared to pay the appropriate sum to the beneficiary. When a guarantee is a simple demand guarantee, this means that the beneficiary named in the document is able to claim the benefit stated in the guarantee by simple demand.