A bond is issued by a guarantor,usually fl bank or an insurance company, on behalf of an exporter. It is a guarantee to the buyer that the exporter will fulfill his contractual obligations. If these obligations are not fulfilled,the guarantor undertakes to pay a sum of money to the buyer in compensation.
This sum of money can be anything from l% to 100%of the contract value.
If the bond is issued by a bank,then exporter is asked to sign a counter indemnity which authorizes the bank to debit his account with any money paid out under the bond. Bonds are usually required in connection with overseas contracts,or with the supply of capital goods and services. When there is a buyer’s market,the provision of a bond can be made an essential condition for the granting of the contract. Middle Eastern countries commonly require bonds,but nowadays many other countries also require bonds. Most international aid agencies,such as the World Bank or the European Development Fund,and most government purchasing organizations in the developing world,now require bonds from sellers. [中国工商银行真题]
Under the bond terms in international business,if the exporter fails to fulfill its obligations,the compensation should be paid by( ).
- A.the importer’s bank
- B.the exporter’s bank
- C.the collecting bank
- D.the negotiating bank
正确答案及解析
正确答案
解析
根据第一段“the guarantor undertakes to pay a sum of money to the buyer in compensation”(担保人负责支付一定的金额给买方作为赔偿)可知,本题应选B项,即由负责为出口商担保的银行支付赔偿。
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