Glossar Trade & Export Finance
The back-to-back documentary credit is not a type of documentary credit specifically covered under the UCP. It is a separate documentary credit which is opened on the basis of and on the same terms as an already existing (original) credit, i.e. back-to-back. For further information please ask your UBS customer advisor who will be happy to help.
Unilateral contract between a bank as guarantor and a beneficiary in which the bank commits itself versus the beneficiary to pay a certain sum if a third party fails to perform or if any other specified event fails to take place, resulting in a default. Bank guarantees are often used as a generic term for security instruments such as guarantees, sureties, standbys and confirmed instruction to pay.
To secure claims on the tenderer by the party inviting tenders in the event of early withdrawal or unilateral variation of the bid, or where the tenderer, upon being awarded the contract, refuses to sign it or provide further guarantees on request.
Where guarantors on a bill of exchange agree jointly and severally to be liable for undertakings given by the actual bill debtor or party adding its name to the bill by signing the bill of exchange. (Other expression for Aval) Statutory provisions relating to bills of exchange are applicable here (Art. 1020 ff. Swiss Code of Obligations). The law relating to simple and joint and several guarantees (Art. 492 ff. Swiss Code of Obligations) is not applicable.
In this regard, it should be mentioned that UBS does not issue avals in the form referred to above, but as separate, non-accessory undertakings to pay in the form of a guarantee. See also under «Bank Guarantees».
A transport document signed by the ship's master or his agent, or by the carrier or its agent, which is considered a title document. Confirms receipt of the goods and the conditions under which carriage was carried out. Release of the goods at the stipulated port of destination takes place only against presentation and handing over of a correctly endorsed original of the bill of lading. See UCP Art. 20, 22.
Simple or joint and several builder's guarantees (see also under «Surety») are used to secure claims of the principal of a building contract (beneficiary of the guarantee) against tradespeople for any potential defects after delivery and/or installation of the goods or for painting, plastering work etc
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