PROTECTION OF INVESTITORS THROUGH BANK GUARANTEES

Abstract

Risk rational investment is one of the main commercial risks, followed by the risk of deviations from the contract, which consists of non-execution or incomplete execution of commitments. There is also a currency risk - the risk that the value of the currency in relation to the situation that existed at the time of entering into the business relationship between the contractor. However, the most difficult is the risk of default of creditors, because of insolvency and, upstate, insolvency of the debtor. In fact, it is the risk of the possibility of opening of bankruptcy proceedings against the debtor, the risk of court settlement in the form of forced settlement in the process of reorganization of the debtor as well as other risks affecting the default. For all these reasons, investors need fast, timely and effective protection of invested capital. Therefore, the bank guarantee has found wide application in the domestic and international business law and practice. The guarantee to ensure the fulfillment of obligations is divided into several ways and many forms. This can be a bank guarantee as a separate legal business, and then in other forms and under different names. This may be the issuance of a letter of credit, bill of exchange acceptance to a certain amount of money, availation (guaranteed by avail bill) promissory notes issued by the client of the bank, the deposit of securities denominated in a certain amount of money and more.