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kezességvállalás

English translation: guarantee / surety

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Hungarian term or phrase:garancia / kezességvállalás
English translation:guarantee / surety
Entered by: Ildiko Santana
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15:25 May 20, 2005
Hungarian to English translations [PRO]
Bus/Financial - Finance (general)
Hungarian term or phrase: kezességvállalás
My problem is that this term is used in a table to describe a form of guarantee provided to banks for the overdrafts of subsidary companies: so Parent A provides a készfizető kezességvállalás to Bank B for the overdraft or loan of Subsidiary C.

The next table lists bank guarantees also secured by the Parent, and these are listed as Garanciavállalások.

Any nice way of avoiding using the word guarantee in both situations? I've seen surety and joint and several liability used often but I must admit I'm not entirely sure what the legal differences are.
Douglas Arnott
Local time: 14:54
guarantees and sureties
Explanation:
En mar talalkoztam sokszor ketnyelvu banki anyagokban a "garancia es kezessegvallalas" angol "guarantees and sureties" forditasaval. Sajnos slamposabb jelentesekben legtobbszor nem tesznek kulonbseget magyarul a garancia es kezessegvallalas kozott, illetve kolcsonosen felcserelik oket, de ebben az esetben talan az altalam javasolt megoldas beleillik a szovegbe.
Selected response from:

Ildiko Santana
United States
Local time: 05:54
Grading comment
thank you
4 KudoZ points were awarded for this answer

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Summary of answers provided
4guarantees and sureties
Ildiko Santana
4co-signerxxxdenny
3guarantee/ surety vs guarantee commitment
Eva Blanar


Discussion entries: 2





  

Answers


1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
garancia- és kezességvállalás
guarantees and sureties


Explanation:
En mar talalkoztam sokszor ketnyelvu banki anyagokban a "garancia es kezessegvallalas" angol "guarantees and sureties" forditasaval. Sajnos slamposabb jelentesekben legtobbszor nem tesznek kulonbseget magyarul a garancia es kezessegvallalas kozott, illetve kolcsonosen felcserelik oket, de ebben az esetben talan az altalam javasolt megoldas beleillik a szovegbe.

Ildiko Santana
United States
Local time: 05:54
Specializes in field
Native speaker of: Native in HungarianHungarian, Native in EnglishEnglish
PRO pts in category: 167
Grading comment
thank you

Peer comments on this answer (and responses from the answerer)
neutral  xxxdenny: is not surety a type of bond, esp. in construction industry?
11 mins
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12 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
kezességvállalás
co-signer


Explanation:
cosigner


A person who signs his or her name to a loan agreement, lease or credit application. If the primary debtor does not pay, the cosigner is fully responsible for the loan or debt. Many people use cosigners to qualify for a loan or credit card. Landlords may require a cosigner when renting to a student or someone with a poor credit history.
http://www.nolo.com/definition.cfm/Term/7692EBF6-10C2-40E7-9...


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Note added at 18 mins (2005-05-20 15:44:03 GMT)
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comaker
An individual other than the borrower who signs a promissory note and thereby assumes equal liability for it. also called comaker. also called cosigner.
http://www.investorwords.com/943/comaker.html
This is much less frequently used than cosigner (8700 hits vs 220,000 hits)

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Note added at 20 mins (2005-05-20 15:45:53 GMT)
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The act is to cosign for the loan or to become a co-signer on the loan

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Note added at 21 mins (2005-05-20 15:47:47 GMT)
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E.g. \"parent A cosigns for the loan\" (omit the word provides)

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Note added at 1 hr 4 mins (2005-05-20 16:30:19 GMT)
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To assume guarantee ~ to cosign for a loan
However, I am afraid that I misunderstood the question in the first place. If the issue is in re a parent company that guarantees a loan of a subsidiary, then, as far as I know the word used almost exclusively is guarantee. Co-signing is more common for a private borrower. The guaranties may vary (short and long term, for a particular credit action or more general) but all of them pretty much always called guarantees.
An example of using cosigning in a similar situation is in:
http://www.yp.com.hk/iypbusiness_e03/en/images/article/Finan...


xxxdenny
Local time: 07:54
Native speaker of: Hungarian
PRO pts in category: 47
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1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
kezességvállalás
guarantee/ surety vs guarantee commitment


Explanation:
This is really tricky, there are so many ways to provide a collateral... At an rate, there is a difference between adóstárs and készfizető kezes: in the first case, #2 shall pay if #1 cannot (will not), but shall pay with the same conditions (say, by instalments), but a "készfizető kezes" is liable for the whole of the outstanding amount, if the bank/ lender opts for a collection.

Now, guarantee = kezesség (a bail - Bürgschaft - is also possible, but it has got more to do with sums deposited for a given purpose, which is not the case here), while surety/suretyship focuses on the element of having a "background" (a parent/subsidiary typically is in that line). I am far from sure what to pick here - I would probably go with guarantee, there is nothing wrong about that, but I simply like surety.

As to the difference between the two cases (if I understood you well):
- when the parent company provides a guarantee for the subsidiary, this means that whatever happens to the subsidiary, the bank may rely on the parent (usually, this is a condition set by the bank),
- when the bank provides a guarantee (an off-balance sheet item), it is fee business: they charge for that. These commitments may be (and usually are) also secured - by the parent, in this case.

Another possibility is (if I am wrong with my above understanding) that the parent provides an "umbrella" guarantee for the current account of the subsidiary and, in addition to that, acts as the guarantor for different projects underway with the bank - so it is reasonable to put those into a separate table. In this latter case, however, I would rather use something like "guarantee obligations of...", instead.

As to joint and several liability, it is somewhat different: it is closer to co-signing = any of those who are "in" can be forced to pay. Say, there are 3 debtors and they owe you one million: if two of them go bankrupt, the third one shall pay the whole of it. (So this is more about the technical side, because in a guarantee, you can set limits.)


Eva Blanar
Hungary
Local time: 14:54
Specializes in field
Native speaker of: Hungarian
PRO pts in category: 178
Grading comment
not a decline but a thank you for the extensive explanation! Have to give the points to the fastest answer, but thanks again.
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The asker has declined this answer
Comment: not a decline but a thank you for the extensive explanation! Have to give the points to the fastest answer, but thanks again.




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Changes made by editors
Feb 7, 2010 - Changes made by Ildiko Santana:
Edited KOG entry<a href="/profile/37677">Ildiko Santana's</a> old entry - "garancia / kezességvállalás" » "guarantee / surety"


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