Financial Instruments: Default, Guarantees, and Banking Operations

Shares in the Event of Default of a Check

It is necessary that non-payment is accredited by one of the following ways:

• On-notarial protest or a statement by librado.
• By a statement dated in a camera or compensation system.

Evaluation Scoring

This is a service through which the bank performs for a client (medium and large companies) the management of payment to suppliers by the financial and administrative management.

Loans Secured: Definition and Types

A secured loan is established when the risk of loans or credit is considered high, and savings banks often ask for collateral.

Types of Pledge (Mortgage)

One can distinguish two types of pledge (mortgage):

1. The possessory pledge, by which the debtor surrenders the creditor the thing covered by the guarantee.
2. Pledge without displacement, in which case the pledged object is retained by the debtor.

Fundamental Difference in Guarantees

The fundamental difference is that in the debtor's personal guarantee, all their personal property, present and future, answers for the debt. In contrast, collateral, such as a mortgage or a pledge of shares, only the specified asset is left in response to the debt guarantee.

Clearing of Effects Between Banks: Truncation

What is meant by the term "truncation" in the clearing of effects between banks?

Truncation is the possibility of immobilization of most of the effects; its physical presentation is not necessary, and orders are transmitted by computer processes.

Banknotes and Currency

What are they? Why do they have different exchange rates?

A currency includes all commercial paper issued in foreign currency (checks, bills, promissory notes) as well as transfers from abroad or income, expressed in foreign currency. Tickets are foreign paper money representing a different divisa. They have an exchange rate that the bank must adhere to based on the ticket exchange.

Exporter Payment vs. Documentary Collection

What is the difference between the exporter against payment and documentary collection against acceptance?

The exporter sends the goods and delivers the financial and commercial interests to the bank. These interests allow the importer to collect their products as their rightful owner to forward them to the importer's bank. The importer's bank will deliver the documents to the customer (the importer) if and only if:

• Payment occurs (DVP - Delivery Versus Payment), meaning only if there are business documents.
• Agreement is reached (Delivery Against Acceptance), meaning there are commercial and financial documents, depending on the conditions.

Advantage of Bank Credit Provider Acceptance

What is the most important advantage a customer accepts the payment provider of credit offered by a bank confirming mechanism?

• There is no risk of default, since the advance appropriation was made by the bank to the provider "without resources."
• Elimination of traditional costs for effects of rotation, pitch letters, commissions...