Seen through the implementation mechanism that there are partiesto the three basic letters of guarantee are:
Bank sponsor or source of the Bank
He undertakes in writing to pay a certain amount on behalf of theclient if that client breached the terms of the contract or the purposementioned in the letter, and during the period of validity of the speech.Guaranteed student or client letter
He who makes a request to the sponsor bank guarantee, warrantyor take one form, but varies depending on the purpose for whichissued, but there is a common factor is that the sponsor will ensureguaranteed in the implementation of the commitments contained inthe contract between the guaranteed and the beneficiary.
Beneficiary
The entity that issued the letter to their advantage, and is represented by the project to be implemented by the sponsored person or entity with a financial or other rights to the guaranteed, and may be for example a government or contractors or otherwise.
Also arise between the three parties to a mutual contractual relationsas follows:
• relationship between the beneficiary in the first letter (or an interestor a company) and the client bank, and this relationship generatescommitment to replace the security issue because of the letter of guarantee, and governed by the Contract or supply.
• a second relationship between the client (content) and the World Bank, which provides warranty (guarantee), and the adoption of thecontract are governed by the editor of letters of guarantee between the bank and its customer.
• a third relationship between the bank guarantor and the beneficiaryof the guarantee, which they are required to pay the guaranteed amount the bank to the beneficiary at the first claim, and ruled by the same letter of guarantee and pledge contained therein.
التسميات
Letters of Guarantee