17 July 2020
New Professional Payment Guarantee
The law on professional payment guarantees dated 10 July 2020 (the “Professional Guarantee Law”) entered into force on 17 July 2020:
- The Professional Guarantee Law introduced a new type of flexible guarantee of payment (the “Professional Guarantee”).
- The new regime has two key principles: (i) contractual freedom and (ii) legal certainty.
- Parties may freely negotiate the terms of the Professional Guarantee.
- Parties have to expressly opt for the new regime.
- The Professional Guarantee is particularly useful for syndicated loans, synthetic securitisations, international capital markets transactions and credit enhancement schemes.