Glossar Trade & Export Finance
Glossar (E)

Effective clause

This supplementary clause in a guarantee specifies more precisely when and
under what circumstances a guarantee enters into force, usually in combination
with the expiry clause.


A notation of transfer usually on the back of a document signed by the endorser. The documentary credit frequently calls for the following documents which are transferred by endorsement:

  • bill of exchange

  • bill of lading

  • insurance document


Enforcement (of a Bank Guarantee)

«Enforcement» means that the beneficiary exercises the right to demand payment (or part payment) of the guarantee amount. The bank will check whether the beneficiary has made the demand for payment in accordance with the terms of the guarantee.

Emerging Markets

Newly industrialised countries or markets with above-average growth potential and developing financial markets.

EUR. 1

Movement certificate and proof of preference for export in countries and regions associated with the EU (and EEA) through free trade agreements, association or preferential agreements, as long as the goods concerned are included in the tariffs preferences.

Expiry clause

The expiry clause in a bank guarantee regulates the duration of an obligation.

Expiry date (of documentary credits)

Explanation see under «Validity (of a documentary credit)».

Extension (of documentary credits)

Explanation see under «Amendments (to documentary credits)».