| gen. |
letter of guarantee (letter of guarantee A letter from a bank to a brokerage firm which states that a customer (who has written a call option) does indeed own the underlying stock and the bank will guarantee delivery if the call is assigned. Thus the call can be considered covered. Not all brokerage firms accept letters of guarantee. Also: letter issued to Option Clearing Corporation by member firms covering a guarantee of any trade made by one of its customers, (a trader or broker on the exchange floor). Bloomberg Financial Dictionary. Document used mainly in the Far East (China, Japan, Korea, Singapore, Taiwan, among others) whereby an importer obligates itself to accept and pay a bill of exchange on its presentment at a certain bank. The objective of this letter is to secure that bank's acceptance of an exporter's draft, for payment through its correspondent bank (where the draft will be presented). BusisnessDictionary.com Alexander Demidov); bond of indemnity; letter of indemnity; a bond of indemnity; declaration of intent (bigmaxus); engagement letter (An engagement letter defines the legal relationship (or engagement) between a professional firm (e.g., law, investment banking, consulting, advisory or accountancy firm) and its client(s). This letter states the terms and conditions of the engagement, principally addressing the scope of the engagement and the terms of compensation for the firm. Most engagement letters follow a standard format. The example given below refers to the engagement of an accountancy firm. WAD Alexander Demidov); commitment letter (A legally binding letter in which a lender documents the terms, prerequisites and conditions under which it agrees to provide financing to an applicant. Commitment letters may be used in almost any lending transaction but are most common in commercial real estate transactions. American Banker Glossary. Lender's written undertaking to a borrower that a certain sum at a certain rate of interest will be made available on borrower's demand during a certain period, provided the requirements detailed in the offer are fulfilled. Borrowers use this evidence of commitment to arrange bridge financing, and lenders charge a commitment fee for this service. Also called loan commitment letter, or letter of commitment. BusinessDictionary.com Alexander Demidov); surety (a person who accepts legal responsibility for another person's debt or behaviour: act as surety for sb/something "He acted as surety for the two companies when they took out the original loan. a promise, or money or property given as a promise, that someone will do something that they have said they will do, such as pay a debt or appear in court: "Analysts doubt whether Ford would have been able to raise such a large amount of debt without some kind of surety. "A local shopkeeper and a relative had been prepared to put up a surety of $20,000, the court heard. CBED Alexander Demidov); letter of surety (Surety is providing a guarantee for another party. A letter of surety is a document the confirms the terms and conditions of said guarantee. Sometimes called a "Bondability Letter", it declares the name of the entity providing surety and under what conditions surety is proffered. The act of surety is normally demonstrated in the form of a surety bond. The most common bonds are performance, payment, bid, license, permit and financial guarantee.  answers.com Alexander Demidov) |
