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Subject: obligor bank. Dear all,
Help urgently needed with 'obligor'. See the context:"The endorsement is not a current liability on the banks balance sheet as payment is up to 5 years out;
o The endorsement only becomes a live liability 180 days before due date, being the normal life expectancy under the Bill of Exchange Act;
o The origianal accepted and endorsed bills will be held by the endorsing bank (sponsor bank) in the FairFund account at that bank so that the bills will not be traded or distributed into any outside or secondary market; o Its endorsement is not as primary obligor but secondary obligor on failure of the
Acceptor to pay, therefore in certain jurisdictions is Contingent Liability;
o On settlement the assets (goods and services to complete the project) are released free clear and unencumbered to the Sponsor and / or its bank if that bank holds Liens and Charges; Thank you very much!
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