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What is the difference between a corporate guarantee and letter of comfort?
Wiki User
∙ 11y ago
Corporate Guarantee bind under legal obligation in absense of fullfill the commitment of risk/obligation by subsidary company.
A comfort letter is an amorphous obligation and is typically given in a situation where a parent company is unwilling to give a guarantee in respect of a subsidiary's liability.
Wiki User
∙ 11y ago
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What is the difference between a corporate guarantee and a bank guarantee?
A Bank guarantee is given by the bank on behalf of it's customer (applicant) to the beneficiary of the bank, that in case of non happening of the particular event which is being covered by that particular guarantee, the bank ( guarantor) will pay the beneficiary an amount, which is mentioned in the guarantee, provided the beneficiary submit the claim under the guarantee in the agreed format and within agreed time. The claim ( compensation) under the bank guarantee will be financial in nature. A corporate guarantee is a guarantee given by the corporate to cover their own exposure or exposure of some other related entity, to the bank. It will also be financial in nature and banks derive an additional comfort from such guarantees when they do their lending to particular borrower.
What is it Bank Comfort Letter?
A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company.[1] The comfort letter can be issued by a CPA declaring no indication of false or misleading information in the financial statements and that the company's prospectus follows GAAP. This is sometimes used in connection with an initial public offering.[2] Comfort letters are also sometimes provided by those involved in evaluating a company's assets, for instance, in the case of oil and gas companies, third-party reserve engineering firms.A comfort letter may also be used as written assurance by a subsidiary's parent company or bank used to offer 'comfort' to the buyer as to the seller's ability or willingness to perform its obligations. Comfort letters are often used because the seller is unable or unwilling to provide a guarantee on a certain outcome, such as the performance of a security.[3]Comfort letters are typically signed prior to the pricing decision or closing date for a given public offering or other transaction, as a part of the due diligence process.
Can bank comfort letter be confirmed by a bank and be used as a fully funded payment guarantee?
A valid security may be given only after approval of board of dirctors, and a parreent company must be authorised in advance by its board of directors. A letter vof comfort could not be said a full flash guarntee until from its words it is not disclose that the company is undertake to repay the loan,in the eve of non payment of loan by the subsidary.
Did Louis comfort Tiffany make Wells Fargo and company mirrors?
Yes.
What is BCL?
BCL is an acronym that stands for Bank Comfort Letter. The letters are issued to the seller from the buyer's bank.
What is the difference between a corporate guarantee and a bank guarantee?
A Bank guarantee is given by the bank on behalf of it's customer (applicant) to the beneficiary of the bank, that in case of non happening of the particular event which is being covered by that particular guarantee, the bank ( guarantor) will pay the beneficiary an amount, which is mentioned in the guarantee, provided the beneficiary submit the claim under the guarantee in the agreed format and within agreed time. The claim ( compensation) under the bank guarantee will be financial in nature. A corporate guarantee is a guarantee given by the corporate to cover their own exposure or exposure of some other related entity, to the bank. It will also be financial in nature and banks derive an additional comfort from such guarantees when they do their lending to particular borrower.
What is the difference between comfort pedic and tempur pedic?
The difference between comfort pedic and tempur pedic is depends on every individual. Some complaint that comfort pedic of excessive firmness, heat retention.
What's the difference between expensive and inexpesive headsets other than cost?
Sound resolution, volume, comfort.
What is the comfort and handling difference between a 205 tire and a 215 tire?
One size difference would hardly be noticeable to the average driver under normal conditions.
What is the difference between a headcollar and a halter?
The difference between a headcollar and a halter is that a headcollare is attached at the neck.... giving tho horse a free head. It has the same use as a halter , just giving the horse more comfort
What is the difference between Comfort Inn rooms and suites?
The differences between a Comfort Inn room and suite are minimal. A room usually consists of a bed, table, chairs, dresser and TV. A suite will have all that, plus an added microwave, refrigerator and a pull out sofa.
What is a comfort break?
A comfort break is just corporate jargon, a euphemism for a toilet/ smoke break. It is used by people who do not like to admit that their digestive systems have exits and feelings too.
What is the difference between rooms maintenance and public?
http://wiki.answers.com/FAQ/7358between maintenance is for Maintain the cleanliness and the maintenance of a public is comfort room
What is the difference between luxury and sports cars?
Luxury cars are built for comfort and convenience, while sport cars are built for speed and performance.
Is there a qualitative difference between a Z train and a T train in China?
AnswerThe difference between Z train and T train is Z train normally won't stop between your station and the destination for more passengers. As to the comfort of seats, facilities and speed, they are almost the same.
What is the difference between a deckrider and a bowrider?
The difference between a deckrider and a bowrider is not that noticeable. For example, the bowrider is fast and sporty and the deckrider is slow, comfort and wider and heavier. Furthermore, the bowrider has a V hull with an open bow which cause it to glide through the water.
Define the meaning of letter of comfort?
Letter of Comfort is a type of Bank Guarantee used for arranging Buyer's Credit. Overseas Banker would ask Indian Bank to provide letter of comfort on behalf of their customer against which they would funds the import transaction.
