Legal documentation

Frontclear encourages the use of standardized transaction documents between the Beneficiary and Obligor, such as ISDA or GMRA documentation. Frontclear can deviate from standard documentation if required to strengthen the transaction under local laws and regulations.

Frontclear concludes guarantee documentation with the Beneficiary only and will only conclude documentation with the Obligor if required to strengthen recourse under local laws and regulations.

Frontclear documentation with Beneficiaries consists of:

  • Guarantee Framework Agreement: Broad framework which, inter alia, details the process for requesting guarantees, stipulates the representations and warranties, and details the permitted transactions per Obligor/Jurisdiction;
  • Guarantee Agreement: The guarantee issued on particular Obligors for each transaction;
  • Assignment Agreement: An agreement whereby the Beneficiaries agrees to assign future title and recourse from the obligor, subject to the guarantee having been paid by Frontclear;
  • KfW counter-guarantee acknowledgement agreement: All Frontclear guarantees are counter-guarantee by KfW. The KfW acknowledge agreement is concluded between Frontclear and the beneficiary in order to effectuate cover under the KfW counter-guarantee facility;
  • Fee agreement: Details the fees payable by the Beneficiary to Frontclear.