Warranties and indemnities

  A counter-guarantee provided by a bank that a customer will pay compensation if goods or services (including financial contracts) provided to a third party do not meet the terms specified in the contract, e.g. performance bonds. Also, any general guarantee that a customer will make payment to a third party in specific circumstances, e.g. customs and tax bonds.

International financial encyclopaedia . 2014.

Look at other dictionaries:

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