Surety bonds are guarantee instruments through with an insurer guarantees the beneficiary that a third party will deliver on its obligation to supply goods or perform services.
Surety bonds are used to guarantee the insurer/obligee that the contractual obligations undertaken by a company – principal – to perform a specific task will be fulfilled. If the principal fails to deliver on its contractual obligations, the insurance company will be liable.
Surety bonds are guarantee instruments through which the insurer guarantees the obligee that the legal obligation of a third party to deliver goods or perform a service will be fulfilled. We have a wide range of cover options to meet the needs of clients in different markets.
There are normally two guarantees that need to be filed in relation to concessions to ensure that obligations will be met by the grantor as well as the concessionaire.
Register of importers and exporters:
General Resolution Number 2220 – Adminstración Federal de Ingresos Públicos (AFIP)
To join the Register of Importers and Exporters and carry out foreign trade operations, exporters as well as importers must prove annually, among other things, a degree of financial solvency (Art. 94 of the Customs Code).
This is calculated on the basis of annual turnover – as declared on the VAT return – or on value of assets – as declared on the Capital Assets Tax return – both set at Ar$300,000.
If the above values are insufficient, applicants must file a guarantee to the value Ar$30,000.
Guarantee application requirements:
Policy application form.Asset Declaration signed by Partners, certified by Public Accountant.
Once completed, the documents should be sent to the Underwriting Department at the Company, which will give an answer based on their analysis via email or telephone.
Guarantees the Obligee that activities or professions will be carried out in accordance to the requirements established by current law or regulations.
Resolution 20/2004 and amendments
Directors of Corporations and Managers of Limited Liability Companies.
(Res.21/2005 Inspección General de Justicia - IGJ)
In February 2005 the Mandatory Guarantee Act came into force, whereby the General Inspectorate of Justice (Inspección General de Justicia) requires all Directors of Corporations, Managers of Limited Liability Companies and Administrators of Limited Partnerships to file guarantees.
Resolution 20/2004 issued by the General Inspectorate of Justice (IGJ) requires that these guarantees be made up of cash deposits, Argentine bonds or by filing surety bonds or collateral.
The policies cover Companies against failure by Directors or Managing Partners to fulfil their obligations in the performance of their duties.
Who should acquire these policies?
Who are the beneficiaries of the policies?
Policies are issued in favour of Companies in which the officers perform their duties. Every Director, Manager or Administrator shall file an individual guarantee (a different policy for each individual).
Art. 76: subsection 4. is replaced by the following text:
"4. The amount of the guarantee shall be the same for all directors or managers, but the total cannot be less that sixty per cent (60%) of the value of the equity capital taking together all eligible officers. Without prejudice to the aforementioned, the amount of the guarantee shall never be – on an individual bases – for less than ten thousand Argentine Pesos (Ar$10,000) or for more than fifty thousand Argentine Pesos (Ar$50,000) per director or manager".
The policy must cover Directors or Managing Partners’ period of tenure. It will usually involve periods of one year.
Requirements to obtain Guarantees:
Send via fax to (54-11) 5554-9009 o via email to firstname.lastname@example.org . We shall contact you shortly afterwards.
Once you have sent in the Application Form filled in with all the required information, we will contact you to pay and collect the original policy (which shall held by your company), and a copy to be filed at the General Inspectorate of Justice.
These have to be submitted by tenants who lease properties in order to guarantee that they will fulfil the obligations undertakes under a rental contract. These policies cover: