A guarantee payment is made by INVEGA to the beneficiary, i.e. the credit institution, when the borrower fails to repay the loan to the credit institution for whatever reason or the borrower fails to repay the first part of the loan and the beneficiary is unable to recover or objective reasons are likely to prevent it from recovering that part from the loan securities provided by the borrower. In other words, the guarantee payment is the amount of money paid to the beneficiary when the borrower fails to repay the loan. The guarantee payment is made after the adoption of a decision to fulfil obligations under the issued guarantee as provided for in the cooperation agreement between INVEGA and credit institution.
Where the borrower fails to repay the loan, the credit institution or beneficiary submits a request to fulfil obligations under the issued guarantee to INVEGA accompanied by documents and other proof. In this case, documentary proof that the loan was used according to its purpose and that the guarantee issue terms and conditions were complied with must also be provided.
If the loan is not repaid, the amounts recovered from the loan securities provided by the borrower will be first used to cover the part of the loan not covered by the INVEGA guarantee and then the part of the loan covered by the INVEGA guarantee.
After INVEGA fulfils its obligations under the issued guarantee, it has the right of recourse against the borrower for the amount of money paid by INVEGA for the borrower.