A final, very important consideration, of course, is implementation. Although this is not always the case, it is generally advisable to hear disputes within the jurisdiction of the applicable law of the agreement in question. However, when considering a Russian guarantee or bond, it must be taken into account that any final judgment or arbitral award must normally be carried out in Russia. This means that for English guarantees, international arbitrations (usually LCIA) are often selected; Arbitration decisions may, if necessary, be enforced by Russian courts15, while English court decisions generally cannot be enforced. This adds an additional level of procedure to the application of English safeguards against Russian guarantors. On the other hand, Russian legal documents can be directly sued by Russian courts.16 Although it appears to be a disadvantage with English guarantees, the fact that the merits of a dispute would be heard by an arbitration tribunal composed of English legal experts is often seen as advantageous, as the result is probably more predictable. Limited to capital commitments under one or more specific agreements 3. An English legal remedy is a “guarantee contract” only to the extent that it is granted by a party with respect to the performance of an obligation by someone other than that party. English law provides, among other things, the possibility for a counterparty of an agreement to grant compensation for certain losses or charges of the other party that would not constitute a surety contract. Under a Russian “specific money” guarantee, any increase in the debts of the principal debtor requires the approval of the guarantee to ensure that the Russian guarantee covers the increased liabilities. It is possible to include such consent in advance in a Russian guarantee, provided that a limit is set for a possible increase in liability.13 It is customary to include a proportional ceiling in Russian guarantees. It is interesting to note that the Russian guarantee is not fully discharged, but covers the debts of the principal debtor on the initial terms of the underlying agreement if the guarantee agreement is not obtained (either in advance or at the time of the amendment).

The application of this principle is very clear when the changes deal with easily identifiable amounts (for example. B increase in interest rates, capital increases, fees, etc.). However, how this principle would apply is less clear if the amendments introduce additional obligations or strengthen potential financial commitments. In theory, failure by the principal debtor to comply with these new restrictions may lead to an earlier acceleration. Therefore, the guarantee can say that the changes to its position are detrimental. If there is an acceleration in such circumstances, it is not known how a Russian court would apply this “original terminology rule.” The Hammurabi code, written around 1790 BC, contains the first known mention of security in a written code. [Citation required] Prices range from about 1% to 5% as a percentage of the penalty amount (the maximum amount for which the guarantee is responsible), with the most creditworthy contracts being the lowest paid. [14] The loan generally includes a compensation agreement in which the principal contractor or other parties agree to release the guarantee in the event of a loss. [14] In the United States, the administration of small businesses can guarantee guarantee obligations; In 2013, the eligible contract tripled to $6.5 million. [15] Traditionally, a distinction has been made between a guarantee agreement and the guarantee.