Announcements


REC-20: Can you please clarify the difference between a Guarantor, the bank issuing the letter of credit, and the “entity” as named on the letter of credit?

A Guarantor is an entity that agrees to guarantee the supplier’s financial obligation under the terms of the applicable supplier contract (for the REC RFP).  A Guarantor issues a Guaranty (a standard form of which is included in the applicable supplier contract) and a Guarantor would typically be a parent company that would meet the standards necessary to be granted unsecured credit under the terms of the applicable supplier contract.  A bank that issues a letter a credit is not a Guarantor.  The Letter of Credit issued by such a bank allows the Bidder to fulfil the requirements of the Part 2 Proposal on a pre-bid basis.  Any Letter of Credit issued by such a bank if the Bidder is a winner could also be used to fulfil any security requirements under the terms of the applicable supplier contract.

If a bidder intends to use either a letter of credit or cash for any security required under the terms of the applicable supplier contract, then the bidder should use the “Bidder” itself as the entity on whose financial standing the Bidder relies (and not a “Guarantor”).