Jan 20, 2014 16:19
10 yrs ago
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German term

Zusage zur Absicherung des Avalkreditrahmens

German to English Law/Patents Finance (general)
Sofern A die Zusage zur Absicherung des Avalkreditrahmens der Gesellschaft nicht spätestens zwei Jahre vor dem jeweiligen Ablauftag der Absicherungszusage schriftlich kündigt, verlängert sich diese Zusage um jeweils ein weiteres Jahr.

undertaking?

Proposed translations

1 hr

commitment to covering the guarantee credit facility

There is an explanation of Avalkredite on this website: http://www.wirtschaftslexikon24.com/d/avalkredit/avalkredit....
The credit facility is the amount which can be drawn on. It can also be called "guaranteed credit facility" but that sounds as if the credit amount is guaranteed rather than it being covered.
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15 hrs

commitment to counter-guarantee the guarantee credit facility

"A counter guarantee is a guarantee given by the surety to the principal debtor providing him with continuing indemnity against the loss or damage that the surety may suffer on account of default on the part of the principal debtor." (wiki answers)
"A counter guarantee is a back-to-back guarantee given by an obligor to indemnify a surety in a three-party contract (such as a performance bond). A counter guarantee is cashed in the unexpected event the obligor fails in the performance of a contract and the obligee calls upon the surety to honor the bond (guaranteed by the surety on behalf of the obligor). http://www.businessdictionary.com/definition/counter-guarant...
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2 days 7 hrs

commitment to extend the validity of the guarantee credit

In short, if A does not give notice for termination of the guarantee credit before 2 years of its expiry, then it gets automatically exteded.

So, the second Zusage mentioned is actually not a commiment, but a condition in tetms of the agreement.
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