Group
Judicial and EU regulation bonds are requirements made by judicial or EU authorities to guarantee payments or the performance of specific activities.
The guarantor provides a bond to a judicial authority (the beneficiary/obligee) in order to interrupt the immediate effects of a first-degree judgement against a debtor (our customer/obligor) which would have condemned the debtor to pay.
Therefore, instead of the payment (and pending the final judgement) the judicial authority can ask for a bond.
When a company receives EU contributions to perform certain activities (e.g. imports or exports of agricultural products), a bond is required in favour of the public body that has granted the EU contributions. The bond is to assure that the funds will be properly utilised and reported by the company.