Standby letters of credit and bank guarantees can be issued by the Bank on behalf of our customers to third party beneficiaries, undertaking that in the event that the customer is unable to perform its obligations as stipulated in the contract, the Bank will ensure that the obligation is fulfilled. In return for this undertaking the Bank is paid a guarantee or commission fee (usually payable in advance), calculated at an agreed rate on the amount of the guarantee or standby letter of credit and the agreed period of time for which the undertaking remains valid.