Slide thuyết trình TACN2 Topic: Third party securities for payment

Title: Third-Party Security for Payment Group 9: • Lại Minh Tâm • Giáp Toàn Thắng • Nguyễn Thị Tuệ Minh • Nguyễn Nhật Linh • Nguyễn Đăng Quý Outline Part I: Introduction Part II: Export Credit Insurance Part III: Payment guarantee Part IV: Exercise Introduction • Payment risk: The importer and exporter’s risk Third party reduces risks of the importer and the exporter, • Forms of 3rd party: exporter credit insurance and bank guarantee • Difference of forms: Export Credit Insurance and Payment Guarantee Export Credit Insurance Overview of ECI Function: To stimulate exports and protect the exporter against major risk, some countries set up a special type of insurance Are you need ECI ??? You need to extend competitive open-account terms to grow your international business, but what happens if you don’t get paid? You can protect your foreign receivables against non-payment risks with an export credit insurance policy Pa g t n e ym e e t n a r ua Why we neek bank guarantee? Guarantor pay the beneficiary if the principal fails triangle relationship among buyer, seller, bank Buyer Seller Bank business situations which guarantee are commonly used in Risk 1: Non-Payment – payment guarantee:  Risk covered: Exporter  Purpose: To secure any claims by the seller on the buyer for payment of the contract price by the agreed date  Guarantee amount: Usually for 100% of the contract price Risk 2: Revocation – tender guarantee: • Risk covered: Importer • Purpose: To secure any claims by the party inviting the tender on the tenderer in the event of withdrawal of the bid before its expiry date or if the bid is modified unilaterally – or if the tenderer, upon being awarded the contract, refuses to sign the contract or provide further guarantees on request • Guarantee amount: In general 1% to 5% of the value of the contract Risk 3: Non performance – Performance Guarantee: • Purpose: To secure any claims by the buyer on the seller arising from default in delivery or performance of the terms of the contract (e.g construction, assembly, execution) • Guarantee amount: Frequently 5% to 15% of the value of the contract Risk 4: Losing prepayment – Prepayment Guarantee • Purpose: To secure any claims by the buyer on the seller for reimbursement of the buyer's advance payment on the contract price before delivery of the goods (or advance payment of the full contract price) – in the event that the seller has failed to meet his or her contractual delivery obligations in full • Guarantee amount: normally 100%, the advance payment Conditional guarantee ( the bank would pay if the claim were supported by) A decision of the court of the first instance (a decision by a judge) An arbitral award (a decision by a court of arbitration) The approval of the principal in writing to the claim Exercise The Seller will inform the Buyer about the insurance Company not later than thirty (30) days after the effective date of the Contract, if the Seller receives no objection from the Buyer within fifteen (15) days thereafter, the Insurance Company is considered accepted Người Bán thông báo Hãng Bảo hiểm cho Người Mua không muộn 30 ngày kể từ ngày Hợp đồng có hiệu lực, Người Bán không nhận lời phản đối từ Người Mua vòng 15 ngày sau đó, Hãng Bảo hiểm coi chấp nhận In the event that the performance of this contract is prevented or delayed, in whole or in part by war, revolution, riot, strike or other causes beyond the control of the parties hereto, then the parties shall not be liable for any default in the performance of all or part of this contract, provided that immediate notice of said delay shall perform such obligations with all due speed unless the contract is previously terminated Trong trường hợp việc thực Hợp đồng bị đình lại, trì hoãn ảnh hưởng phần bị ảnh hưởng chiến tranh.,bạo loạn, đình công, tranh chấp lao động, hoả hoạn, lụt bão nguyên nhân gây nên bên ý muốn hai bên hai bên phải không bị ràng buộc trách nhiệm hợp đồng phần hợp đồng Mọi vấn đề khác biệt hay tranh chấp phát sinh từ hợp đồng hay văn thỏa thuận có liên quan đến việc thực thi hợp đồng giải nỗ lực hòa giải bên All disparities and disputes arising from this contract or agreement documents relevant to this contract implementation shall be settled by mediation between parties Bên mua phải mua bảo hiểm rủi ro thiếu hụt Bên giám định công ty Bảo hiểm định The buyer shall buy Insurance covering shortage risk The inspection agency will be Insurance Company [...]... in delivery or performance of the terms of the contract (e.g construction, assembly, execution) • Guarantee amount: Frequently 5% to 15% of the value of the contract Risk 4: Losing prepayment – Prepayment Guarantee • Purpose: To secure any claims by the buyer on the seller for reimbursement of the buyer's advance payment on the contract price before delivery of the goods (or advance payment of the full... guarantee are commonly used in Risk 1: Non -Payment – payment guarantee:  Risk covered: Exporter  Purpose: To secure any claims by the seller on the buyer for payment of the contract price by the agreed date  Guarantee amount: Usually for 100% of the contract price Risk 2: Revocation – tender guarantee: • Risk covered: Importer • Purpose: To secure any claims by the party inviting the tender on the tenderer... được chấp nhận In the event that the performance of this contract is prevented or delayed, in whole or in part by war, revolution, riot, strike or other causes beyond the control of the parties hereto, then the parties shall not be liable for any default in the performance of all or part of this contract, provided that immediate notice of said delay shall perform such obligations with all due speed...2 Characteristics • Applicability : Recommended for use in conjunction with open account terms and pre-export working capital financing • Risk : Exporters assume the risk of the uncovered portion of the loss and their claims may be denied in case of non-compliance with requirements specified in the policy • Pros : - Reduces the risk of non -payment by foreign buyer - Offers open account terms safely... tender on the tenderer in the event of withdrawal of the bid before its expiry date or if the bid is modified unilaterally – or if the tenderer, upon being awarded the contract, refuses to sign the contract or provide further guarantees on request • Guarantee amount: In general 1% to 5% of the value of the contract Risk 3: Non performance – Performance Guarantee: • Purpose: To secure any claims by the... full • Guarantee amount: normally 100%, the advance payment Conditional guarantee ( the bank would pay if the claim were supported by) A decision of the court of the first instance (a decision by a judge) An arbitral award (a decision by a court of arbitration) The approval of the principal in writing to the claim Exercise The Seller will inform the Buyer about the insurance Company not later