Bonds

A bond is a written promise made for a defined consideration by one party to be collaterally answerable for the debt or default of another. Bonds are for a specific time period.

• Immigration Bond guarantees cover for repatriates on advice from an Immigration Official for work permits and/or persons seeking citizenship.

• Customs Bond is issued in favour of Customs and Excise Department to allow businesses to clear imported goods prior to the payment of duties.

• Bid / Tender Bond [Guarantee] can be issued on behalf of a Contractor in lieu of a deposit [a percentage of the contract] to support a tender for a contract. This is cancelled automatically once the contract is awarded. After the contract is awarded an Advance Payment Bond or a Performance Bond can be established.

• Advance Payment Bond can be issued to a contractor or importer to start a project awarded to him.

• Performance Bond [Tender] is issued in favour of Employers with the Bank as Surety for the performance of contractual obligations.

• Cheque Guarantee Facility - This facility ensures that customers' cheques issued will be paid on presentation,
  provided certain conditions stated in the Indemnity are observed.

• Standby Letter of Credit - A Standby Letter of Credit is any letter of credit given to the beneficiary by the issuing Bank on behalf of the applicant, undertaking either:
1. To repay an advance made by the beneficiary to the applicant.
2. To make payment on account of any default by the applicant under a contract with the beneficiary.

• Customs Broker Bond - Licensed Brokers are required to post these Bonds in favour of the Customs Brokers Board. Although they do not carry an expiry date, the Broker must renew his license annually. Should the Broker not perform at the required standard, the Board has the right to revoke the license and authorise cancellation/replacement of the Bond.