In simple terms, a bond is a written promise or contract to repay the principal with interest on a specified date. A bond is often used to raise capital.
Immigration Bond This guarantees cover for repatriates on advice from an Immigration Official for work permits and/or persons seeking citizenship.
Customs Bond This is issued in favour of the Customs and Excise Department to allow businesses to clear imported goods before the payment of duties.
Bid / Tender Bond [Guarantee] This can be issued on behalf of a contractor instead of a deposit (a percentage of the contract) to support a tender for a contract. This is automatically cancelled once the contract is awarded. After the contract is awarded, an advance payment bond or a performance bond can be established.
Advance Payment Bond This can be issued to a contractor or importer to start a project awarded to him or her.
Performance Bond [Tender] This is issued in favour of employers with the bank as surety for the performance of contractual obligations.
Cheque Guarantee Facility This ensures that issued customers' cheques will be paid upon presentation, provided certain conditions stated in the indemnity are observed.
Standby Letter of Credit This is any letter of credit given to the beneficiary by the issuing bank on behalf of the applicant, undertaking either:
to repay an advance made by the beneficiary to the applicant.
to make payment on account of any default by the applicant under a contract with the beneficiary.
Customs Broker Bond Licensed brokers must post these bonds in favour of the Customs Brokers Board. Although they do not carry an expiry date, the broker must renew his or her licence annually. If the broker does not perform at the required standard, the Board has the right to revoke the licence and authorise cancellation/replacement of the bond.