A unilateral undertaking from the guarantor-bank that, on performance by the authorised person (the beneficiary of the guarantee) of specific conditions for payment, which may be attested to by documents indicated in the said undertaking, these being appended by the beneficiary to his/her claim for payment, drawn up in the prescribed form, the bank will then provide funds to the beneficiary of the guarantee, either directly or via another bank.

In order to be effective the extension and confirmation of a bank guarantee shall be made in writing. Types of bank guarantees: tender, credit, repayment of lease, repayment of receivables, payment of duty, advance payment, contractual.