The CCMC is pleased to release the Report of its Inquiry into pre-contractual obligations that banks must comply with before accepting a Guarantee to secure a credit facility.
The Inquiry found that in general, responding banks have appropriate policies and procedures in place to meet their obligations under the Code. We also identified some examples of good industry practice that exceeded these obligations.
The CCMC has, however, made some recommendations about disclosure of general warnings within the pre-contractual documentation to assist with informed decision making by prospective guarantors and has highlighted areas for bank attention when transitioning to the revised 2013 Code of Banking Practice by 1 February 2014.
A full copy of the report can be downloaded here.