Endorsements
BEC can endorse instruments issued in Cuban pesos, Cuban convertible pesos or other convertible currencies, negotiable in the national territory and, with prior consent from BCC, outside the territory of the Republic of Cuba.
The drawer shall request the Endorsement in writing and shall submit a copy of the document to be endorsed. During the interview, the drawer shall provide all the necessary elements related to his application:
– Date of issuance of the document.
– Type of currency.
– Amount in numbers and letters.
– Full name of the drawer.
-Purpose of the instrument.
– Maturity date.
– Signature of the drawer: Two authorized signatures are required.
– Form of payment: it shall be written in the relevant space or be set in the instrument.
– Data of the drawee.
–Signature of the drawee: Two authorized signatures are required (in the case of bills of exchange domiciliated, two signatures authorized to handle the bank account of the drawee).
Additionally, an assessment is made on the economic situation of the drawer, whether it is a customer or not, to decide to endorse it or not. The request is then submitted to the Bank’s Credit Committee and Board of Directors.
The fees for this kind of service are comprised in the Bank’s Sheet of Terms and Conditions.
An endorsement is a contract that conveys a binding commitment to perform the payment of an obligation in favor of the beneficiary who will receive an asset or another resource.
In an endorsement contract the beneficiary is the guarantor and the applicant of the loan is the debtor.
The main function of an endorsement is offering a guarantee so that the debtor may assume the obligation considering that in case the main debtor does not repay the credit the guarantor may be required to settle the debt.