A Guarantee is a distinct promise to pay and is not dependent on the principal obligation. The guarantor (the bank) may not raise any objections or defenses based on the underlying transaction.
With so many people trying to broker private placement programs and bank instrument sales, we felt that it was critical to outline the entire process from instrument creation to maturity.
If you have Series H, J, K, L, M, R or Z Series Letras do Tesouro Nacional (LTNs) that are repactuated and fully and legally registered with the Central Bank of Brazil, then the information below should be of interest to you.
