open Ended perofrmance Bond Guarantee
Posted: Mon Mar 22, 2010 3:03 pm
Dears,
I have a guarantee issued on 18.112009, this performance Bond is valid until 30.06.2010 or until the date of issue of the final certificate by the supervising officer whichever shall be the later.
I calculated the Guarantee fees for the period between issuance date and expiry date.
Now my question is, in case the guarantee reached the expiry date, what should we do in accordance to :-
1) Guarantee fees, shall we take a fees for one year or what?
2) Customer, shall we contact customer or not on expiry date?
I need the procedure for you as banker, what do you do?
I have a guarantee issued on 18.112009, this performance Bond is valid until 30.06.2010 or until the date of issue of the final certificate by the supervising officer whichever shall be the later.
I calculated the Guarantee fees for the period between issuance date and expiry date.
Now my question is, in case the guarantee reached the expiry date, what should we do in accordance to :-
1) Guarantee fees, shall we take a fees for one year or what?
2) Customer, shall we contact customer or not on expiry date?
I need the procedure for you as banker, what do you do?