The Created Open Guarantee contract can be closed at any time for several reasons.
The Reason for Cancelation is the reason notified to the parties for the Guarantee cancellation.
The below reasons are accepted by the system in order to cancel the contract,
- Fulfillment of terms and conditions - The Terms and conditions of the Guarantee are fulfilled.
- Payment executed - Payment of the Guarantee is executed.
- Replacement by a new guarantee - A guarantee was replaced by a new guarantee.
- Return of original guarantee - The original guarantee was returned.
- Advice of Reduction/ Release received - The Message received releasing the party from its obligation.
- Unallocated contract - Draft Guarantee only.
- Validity expired - The validity of the guarantee has expired and it is not necessary to return the guarantee.
The contract cannot be closed if the message received is evidencing parties partially releases from its obligation and also if there are any pending claims available for the contract.
To Close an existing open Guarantee contract, GITCAN transaction is used.
Select it from the menu item[Guarantee Products -> Guarantees/Standbys -> Other - > Close].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.