15. The Convention also includes in its scope confirmations of undertakings, i.e., an undertaking added to that of, and authorized by, the guarantor issuer.

If would be difficult for domestic certification authorities to assume liability for certificates issued abroad without a common ground concerning the types of warranties offered by certification authorities.

A lesser degree of trustworthiness would be reached where the domestic certification authority limited its commitment to guaranteeing the trustworthiness of the foreign certification authority without assuming any liability for the contents of the foreign certificate.

By requiring authorization of the guarantor issuer, the Convention does not recognize as confirmations quot silent quot confirmations, i.e., confirmations added without the assent of the guarantor issuer.

10. In the undertakings covered by the Convention the guarantor issuer promises to pay the beneficiary upon a demand for payment.

This Convention applies to an international undertaking if the place of business of the guarantor issuer at which the undertaking is issued is in a Contracting State.

By allowing discretion to the guarantor issuer acting in good faith, the Convention is sensitive to the concern of guarantor issuers over preserving the commercial reliability of undertakings as promises that are independent from underlying transactions.

The burden of proof was on the claimant.

Privatization of basic goods and services such as water was also criticized for reducing, in many instances, the access of the poor.

28. The Convention does not deal with the question of capacity to issue undertakings (i.e., who is permitted to be a guarantor issuer).

What testimony will you bear?

The latter reference, to other undertakings, clarifies the independent nature of a counter guarantee from the guarantee that it relates to, and of a confirmation from the stand by letter of credit or independent guarantee that it confirms.

A counter guarantee is defined in the Convention (article 6(c)) in the same essential terms as the basic notion of quot undertaking quot , namely, as an undertaking given to the guarantor issuer of another undertaking by its instructing party and providing for payment upon simple demand or upon demand accompanied by other documents, in conformity with the terms and any documentary conditions of the undertaking (counter guarantee).

Such guarantees might take the form of financial security deposits, insurance or bonds.

E. Bonds and other financial security

Under the Convention (article 11), the events that trigger cessation include a statement by the beneficiary releasing the guarantor issuer a termination of the undertaking agreed by the guarantor issuer full payment of the amount stipulated in the undertaking, unless the undertaking provided for automatic renewal or increase of the amount available expiry of the validity period of the undertaking.

I bet you're worried.

It was originally envisaged that CIS PKF could assume the task of securing in the assembly areas.

37. The rights and obligations of the guarantor issuer and the beneficiary are determined by the terms and conditions of the undertaking (article 13(1)).

(g) A letter of credit or independent guarantee.

(d) All expenses incurred by those giving testimony shall be borne by the State.

Where the liability of a certification authority was alleged, the certification authority would be presumed to be liable for the consequences of issuing a certificate, unless it could prove that it had met the above mentioned requirements.

That is in line with the notion that the role of the guarantor issuer in the case of independent undertakings is one of paymaster rather than investigator.

Such a certificate guaranteed that the car in question was not stolen.

I want to assure the Assembly that Slovakia is ready to take on this important assignment with honour and responsibility.

In order not to lose what had already been achieved, both sides must assume responsibility for implementing the peace agreements.

54. In the absence of a choice of law as described above, the Convention provides for application to the undertaking of the law of the State where the guarantor issuer has that place of business at which the undertaking was issued (article 22).

VII. INDEPENDENT GUARANTEES AND STAND BY LETTERS OF CREDIT 18

The Convention will also facilitate issuance of independent guarantees and stand by letters of credit in combination with each other, for example, the issuance of a stand by letter of credit to support the issuance of a guarantee, or the reverse case, with both undertakings capable of being subject to the same legal regime.

Security rights in rights to proceeds from a drawing under an independent undertaking

Accordingly, the focus of the Convention is on the relationship between the guarantor (in the case of an independent guarantee) or the issuer (in the case of a stand by letter of credit) (hereinafter referred to as quot guarantor issuer quot ) and the beneficiary.

The ship apos s insurer had furnished the consignee with a letter of guarantee as security for any penalties imposed on the ship owner in his capacity as carrier.

The lenders will insist that those risks be assumed by the project company and its contractors, of whose competence and reliability they will wish to be assured.

In the case of differential treatment, the burden of proof was on the employer.

In many countries health care expenditure is borne either by the Government or by individuals themselves.

Convention on Independent Guarantees and Stand by Letters of Credit.

Such offers should be made on the understanding that the host government would cover the incremental costs of meeting away from Bonn.

That is more than a promise it is an assurance.

9. The scope of application of the Convention is confined to instruments of the type understood in practice as independent guarantees (referred to as, e.g., quot demand quot , quot first demand quot , quot simple demand quot or quot bank quot guarantees) or stand by letters of credit (article 2(1)).

The deposit given by the customer, all the securities that have been purchased through securities lending and borrowing, and all the funds from the sales of securities are collaterals to the securities firm, and shall be deposit to the customer securities guarantee account or the customer funds guarantee account and credited to the customer s credit granting account.

It was suggested that any certification authority, when issuing a certificate, should be under an obligation which might read as follows

The more information was contained in a certificate, the greater the risk was that liability might be incurred by the certification authority.

The certification authorities should not be made liable for the accuracy of such non verified information.

No securities, no stocks, no bonds.

(c) To participate in the work of the Contact Group of guarantor States and organizations and to serve as its coordinator