Guarantees
Reduce the risk of late performance of contractual obligations within the agreed deadlines. Our team of experienced colleagues will provide you with the most professional expertise regarding the following types of guarantees: tender guarantees, performance guarantees, advance payment guarantees, customs guarantees, payment guarantees and money retention guarantees.
Tender (bid) guarantee: is a bank guarantee by which the guarantor (CKB) undertakes to pay to a beneficiary (contracting authority) certain amount of money if a tender participant (guarantee principal) revokes its bid during the bidding process or refuses to conclude contract in accordance with conditions of the accepted tender (bid).
Performance guarantee: can be used for almost all types of sales agreements or commercial service agreements. However, it is most widely used in agreements on delivery of equipment on credit or in building contracts.
Defects liability guarantee: represents a bank guarantee by which the guarantor (CKB) undertakes to pay a certain amount of money at the request of the beneficiary if the principal fails to fulfil the obligations from the underlying contract.
Advance payment guarantee: is a bank guarantee by which the guarantor (CKB) undertakes to pay to the guarantee beneficiary (buyer) a certain amount of money (advance payment made), if the guarantee principal (seller) fails to meet contractual obligations. It is generally used in connection to large export/import deals, where suppliers of equipment or other goods require buyers to pay a certain amount as advance payment. The product is intended for all legal entities, primarily those engaged in large export/import transactions.
Customs guarantee: With the customs guarantee, CKB guarantees to the Montenegrin Customs Administration for regular settlement of obligations related to excise duties, taxes, customs debt and other levies owed by the client, depending on the customs process. These guarantees can also be used as security for the payment of some services – goods warehousing, goods transit, active and passive improvement of goods.
Payment guarantee: represents a bank guarantee by which the Bank guarantees for regular settlement of obligations to suppliers within the guarantee period subject to certain conditions.
Retention guarantee is particularly applied as security for the correct execution of works in cases when the client makes a certain deposit to the contractor.
Documents required
The documents that need to be submitted, regardless of the type of guarantee required by the client, are:
- Copy of the registration decision
- Copy of the certificate on the activity classification
- Copy of the certificate on the activity classification
- Copy of OP Form (certified signatures of persons authorized to represent the company)
- Set of forms for annual accounts (Balance sheet, Income statement, Cash flow statement, Statement of changes in equity, Balance sheet - auxiliary form, Income statement - auxiliary form, Income tax return, Depreciation calculation for tax purposes) for the last 3 years, certified by the Commercial Court
- Trial balance for the last 3 years
- Trial balance year to date, financial statements (balance sheet and income statement) year to date
Depending on the type of guarantee, it is necessary to submit:
- application for the issuance of a guarantee in the typed form, with all important company data
- a contract between interested parties where a certain type of guarantee is required