Regulatory Alerts2012-03-22
Third-party guarantees in favor of a banking corporation
The Supervisor of Banks issues directives regulating the conduct of banking corporations regarding third-party guarantees to ensure transparency and fair treatment of guarantors. The document mandates specific disclosure obligations, including maintaining a guarantor database, providing written statements on guarantee scope, and sending periodic notices based on guarantee type and outstanding balances. It further establishes strict timelines for notifying guarantors of debt defaults, impending legal actions, and guarantee expiration, while limiting the bank's ability to demand immediate payment without prior notice to the debtor.
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