An Approach to the Financial Guarantees 0
Financial guarantees are a new type of security over financial instruments or cash account designed to ensure compliance with financial obligations. They are not a mere mechanism with security functions. They serve to ensure the financial lending institutions safe and efficient coverage, subject to agreement of wills simple. But it also has benefits for borrowers, because they facilitate access to credit on better terms. Hence the trend toward widespread use beyond the initial estimates of limiting its application to relations between banks.
In Spain are regulated in the second chapter of Royal Decree Law 5 / 2005, on urgent reforms to boost productivity and to improve public procurement, in addition to transpose Directive 2002/47/EC, has tried to sort and systematize the scattered banking and financial guarantees.
Financial guarantees are real security interests that arise in nature by the inadequacy of traditional safeguards typified in the Civil Code to meet the needs of financial market coverage. They are special guarantees real nature that allow Read the rest of this entry →