IASA Guarantee

  1. All Members must maintain an irrevocable or renewable bank guarantee issued in the favor of the International Air & Shipping Association (IASA) or parties as specified by the Association, in the United States Dollar (US$) amount of Fifty Thousand (50,000.00) for Full Member and Twenty five Thousand (25,000.00) for Associate Member.
  2. As a substitute for the Bank Guarantee, the Association shall also accept, Insurance (Performance) Bond, Letter of Credit and Cash Deposits.
  3. This bank guarantee shall be used to cover bankruptcy and/or failure with regard to payment of and by the Member.
  4. The Bank Guarantee shall also cover a grace period of another 30 days from expiry date, for claims that may be made by the Association.
  5. Should legislation in a specific Country prohibit the issue of a Bank Guarantee or an equivalent document in the U.S. currency and/or payments overseas, the Member shall make a cash deposit in the amount of US$50,000.00 or a US$25,000.00 as the case may be, directly to the Association through the IASA General Manager, This deposit shall be held in trust by way of an interest bearing deposit. Interest earned will be at the disposal of the Member through the IASA General Manager.
  6. In the event of any call upon the Guarantee or any Deposit, the Member shall procure within 28 days of such call that the Bank Guarantee, Insurance Bond or Deposit is made up to the full sum of US$50,000.00 or US$25,000.00 as the case may be.
  7. An Aspirant Member shall submit a proof of such an arrangement well before his interview with the Board of Directors. Unless the actual Bank guarantee or cash is provided at that time, proof can be given by letter of intent from a reputable Bank, stating that a guarantee will be issued in favor of IASA in the amount of US$50,000.00 effective on the day which the Aspirant Membership is awarded to the Company.
  8. Associate Member and Subsidiary Regional Group Member shall submit a proof of such an arrangement well before his interview with the Board of Directors. Unless the actual Bank guarantee or cash is provided at that time, proof can be given by letter of intent from a reputable Bank, stating that a guarantee will be issued in favor of IASA in the amount of US$25,000.00 effective on the day which the Associate Membership is awarded to the Company.
  9. The General Manager shall be entitled to withhold a Member’s bank guarantee until such time the new Bank Guarantee is receipted.