Redemption

If a financing transaction is secured by guarantee and the financed enterprise fails to honour its payment obligations, the Foundation will effect payment in lieu of the enterprise to the financial institution corresponding to the percentage of the guarantee validly issued.       

The Foundation is liable for payment of the outstanding principal amount it undertook to pay as set out in the General Business Conditions. Should the Foundation's guarantee cover also interest, the liability for payment will include also the interest up to the percentage of the aggregate transaction interest outstanding at that time (guaranteed amount) defined in the Letter of Guarantee, not exceeding the principal and interest defined therein.