Definicja guarantee rate

Co znaczy GUARANTEE RATE:

A pre-defined percentage of the collateralized receivable for which the guarantor signs an agreement with the collateral taker to assume responsibility for paying the liabilities.

In the case of indemnity bonds: If the collateral giver's contingent contingent payment obligation for the bank's collateralized transaction is limited to the loss of the bank after liquidation of any remaining collaterals for the collateralized transaction, and this default liability is not only limited to a percentage of the loss but rather is only or also limited to a pre-defined percentage of the collateralized transaction, then this constitutes a restriction on the default liability.

Example

Guarantee rate = 80%. Two collaterals are used to secure the receivable:

Land charge: 65% of the receivable (value 2, a relative or absolute value) to be sufficiently collateralized by the land charge. Indemnity bond (default Burgschaft): provides cover for the expected loss (35% of the total amount) to 80 % (value 1)