TaxTMI 
TaxTMI 
Is this necessary to give a bank guarantee in auto renewal form for any type of bond.
Bank Guarantee
03 Jan 2017 
2 Replies 
1343 Views Asked by
Bank guarantee requirement: security bonds need a current guarantee and lapse on expiry, affecting bond completeness.
Bank guarantee requirements differ by bond type: a surety bond does not need a bank guarantee, but a security bond requires a bank guarantee and is incomplete without its timely renewal. Bank guarantees expire at the end of their stated period; where auto renewal is relied upon, a fresh bank guarantee may be necessary to maintain the bond's effectiveness and protect revenue. (AI Summary)
Bank guarantee requirements differ by bond type: a surety bond does not need a bank guarantee, but a security bond requires a bank guarantee and is incomplete without its timely renewal. Bank guarantees expire at the end of their stated period; where auto renewal is relied upon, a fresh bank guarantee may be necessary to maintain the bond's effectiveness and protect revenue. (AI Summary)