In the current economic situation, a bank guarantee is one of the most popular financial services. It is an instrument for insuring financial risks that may arise due to the counterparty’s refusal to fulfill obligations.
Bank guarantee agreements can be concluded by credit (insurance) organizations for any required amount and for almost any period not only with legal entities, but also with individual entrepreneurs.
Based on clause 1 of Article 369 of the Civil Code of the Russian Federation, a bank guarantee ensures the proper fulfillment by the principal of his obligation to the beneficiary (the main obligation). Thus, a bank guarantee is one of the forms of securing obligations and is a guarantee of a bank *, which guarantees the fulfillment of the obligation assumed by the company that applied for such a guarantee.
