Content

 

Scope of Cover

Subject matter of the Untied Loan Guarantee

The covered obligation under the Untied Loan Guarantee is the Policyholder’s repayment claim against the foreign debtor as agreed in the loan contract (Guaranteed Amount). The loan can be denominated in Euros or in any foreign currency. The Guaranteed Amount further includes any interest agreed in the loan contract and set forth in the Guarantee Declaration insofar as they accrue up to the agreed maturities.

top

Events of loss

An event of loss is deemed to have occurred if and when the Guaranteed Amount is uncollectable as a result of one of the political or commercial risks defined below.

An amount is deemed to be uncollectable for political reasons as a result of one of the following events:

  • Legislative or administrative measures abroad which were passed or came into force after the conclusion of the loan contract in respect of the Guaranteed Amount or
  • War, other armed conflicts, revolutions or civil commotion abroad
  • Payment embargoes or moratoriums as well as the impossibility of converting or transferring amounts deposited with a solvent bank for their transfer to the Federal Republic of Germany
  • Exchange rate losses due to governmental devaluations

An amount is deemed to be uncollectable for commercial reasons as a result of one of the following events:

  • Insolvency, unsuccessful execution and suspension of payment or
  • Protracted default

top

Retention

The Policyholder participates in a loss at a retention of 10% unless a different percentage has been specified in the Guarantee Declaration. This percentage may be insured with a third party except for 5% of any loss which have to remain uninsured.

top

 

Footer