Guarantees
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To protect you against currency fluctuation, SMEC provides services to hedge against
foreign exchange risks for foreign currency payments expected to be made or received
by you.
In the normal course of business we issue the following guarantees: |
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Performance Guarantee
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At the request of the customer, SMEC issues a performance guarantee, guaranteeing completion of work
or supplies, as per terms of contract. |
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Bid Bond
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NIB Banks issues bid bond in lieu of deposit of earnest money against bids for tenders. |
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Letter of Credit
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Stand-by letter of credit is used as a substitute for the commonly used performance
bond. This type of letter of credit may be issued to cover non-trade transactions
and to guarantee performance of a contractor as supplier |
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Advance Payment Guarantee
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At your request we will guarantee you the amount of advance payment for satisfactory
performance of a contract or other work as specified in the guarantee. It ensures
that: |
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- Instrument obligates SMEC to pay the guaranteed amount or the adjusted part thereof,
without any dispute regarding improper use of the advance funds.
- Guarantee shall become operative only upon receipt of
the advance money by SMEC for credit to your account. (This clause is incorporated
in the guarantee).
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Security Deposit Guarantee
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At your request SMEC will issue you a guarantee in lieu of security deposit, generally
to utility service organizations. |
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Retention Bond
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SMEC also provides Retention Bond facilities to it’s customers. |