Typical characteristics and risks
Economic structure and function
By issuing a surety bond, CSC COMPAGNIA SVIZZERA CAUZIONI S.A. commits itself to guaranteeing, within a given time and economic limit, an obligation to do or give of a third party
called the guaranteed contractor towards its creditor called the beneficiary.
Main risks for the bondholder the main risk for the guaranteed contracting party is represented, in the event of the enforcement of the surety bond by the beneficiary and subsequent payment by CSC COMPAGNIA SVIZZERA CAUZIONI S.A. of indemnification to the beneficiary, by the restitution to CSC COMPAGNIA SVIZZERA CAUZIONI S.A. itself of the amount paid to the beneficiary following the enforcement of the surety. Clearly, in order for the enforcement to take place, the necessary presupposition is that the guaranteed contracting party hasn’t fulfilled the obligation guaranteed and that the CSC COMPAGNIA SVIZZERA CAUZIONI S.A. has ascertained, by means of an appropriate investigation of the case, an indemnifiable loss.
Economic conditions for the contractor
- preliminary investigation expenses: minimum ZERO and maximum FRS 10,000.00
- with duration up to one year: charges not exceeding 5.00% - minimum 0.40%
- with duration beyond one year: not exceeding 13.00% - minimum 0.20%.
The above percentages must be calculated on the maximum recoverable amount indicated on the front page of the surety bond.
It should be noted that the economic conditions are determined according to the solvency of the guaranteed contractor. It should be noted that part of the surety bonds indicated in the "surety bonds for companies" section of the Company's website may be issued by banks, subject to suitable information being provided to the client and his express consent.
In fact, the Company, by carrying out a preliminary activity aimed at verifying the solvency, Patrimonialism , profitability, morality, technical and indemnity capacity of the client, can prepare its own independent evaluations that can be used by banks indicated by the same Company to obtain the requested surety. The Company will therefore limit itself to providing consultancy and assigning a credit rating to the client.
“This document is a simple translation into English of the original document in Italian, the official language of Cantone Ticino, which can be found on the website www.csc-lugano.ch. Therefore, in the event of inaccuracies, errors, imprecisions, or difficulties in interpreting this document, the original document in Italian shall prevail; this also applies if there is a contrast between what is reported in this document and what is reported in the original document in Italian. - Il presente documento è la traduzione semplice in lingua inglese del documento originario in lingua italiana, lingua ufficiale del Cantone Ticino, presente sul sito www.csc-lugano.ch; pertanto in caso di inesattezze, errori, imprecisioni, difficoltà interpretative del presente documento, prevale il documento originario in lingua Italiana; questo anche nel caso in cui vi fosse un contrasto fra quanto riportato nel presente documento e quanto riportato sul documento originario in lingua Italiana.”