Indirect Finance (Letters of Credit, Letters of Guarantees and/or Bank Guarantees)
What It covers
- Non-cancelable limits
- Cover non-honoring of accepted outward lc by the applicant
- Cover applicant’s default on obligations resulting from the liquidation or call of bonds by a beneficiary
- Can also cover the unfair calling of bonds
- Cover the call on conditional indemnity agreements backing/securing the finance of trade contracts granted extended/granted by the financial institution to obligors.
- Cover insolvency and bankruptcy risks of an obligor/applicant
