que haya podido contraer el avalado con el beneficiario del aval

English translation: that the guaranteed party may have contracted with the guarantee beneficiary

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:que haya podido contraer el avalado con el beneficiario del aval
English translation:that the guaranteed party may have contracted with the guarantee beneficiary

13:10 Apr 22, 2018
    The asker opted for community grading. The question was closed on 2018-04-26 08:54:08 based on peer agreement (or, if there were too few peer comments, asker preference.)


Spanish to English translations [PRO]
Bus/Financial - Business/Commerce (general) / Transfer pricing master file
Spanish term or phrase: que haya podido contraer el avalado con el beneficiario del aval
Hi folks,

This is part of a master file on transfer pricing for a Spanish business group that fulfills a legal disclosure obligation. It's pretty straightforward, but in this sentence, I don't understand the difference between the "avalado" (I have guarantee holder) and the "beneficiario del aval". Any help is appreciated!

La sociedad avalista responde de forma solidaria con su patrimonio actual y futuro de las deudas vencidas y no liquidadas que haya podido contraer el avalado con el beneficiario del aval.

What I have so far (which doesn't make much sense to me):

The guarantor company is jointly and severally liable for covering with current and future assets any unsettled and overdue debts that the guarantee holder may have incurred with the beneficiary of the guarantee.
Lisa Mann
that the guaranteed party may have contracted with the guarantee beneficiary
Explanation:
As I understand it, the "avalista" is the guarantor (the party that provides the guarantee or surety), the "avalado" is the guaranteed party (i.e., the secured debtor, whose debt is covered by the guarantee), and the "beneficiario" is the creditor, the party to which the guarantee is paid if the guaranteed party fails to meet its obligations.

This is about Polish law:

"A 'corporate guarantee' is a promise by a third party (the guarantor) to meet the obligations of the guaranteed party to the beneficiary in the event that the guaranteed party fails to meet its obligations."
http://www.internationallawoffice.com/Newsletters/Corporate-...

And this is about Spanish law:

"What happens if the beneficiary of a bank guarantee or other surety decides to enforce it against a payment default by a debtor who has been declared insolvent? This is a crucial question not only for the beneficiary of the guarantee but also the granter thereof – in many cases a financial institution. Neither one nor the other should be unaware of the consequences if their debtor and guaranteed party, respectively, is declared to be insolvent."
https://www.hg.org/article.asp?id=20194

--------------------------------------------------
Note added at 12 hrs (2018-04-23 01:48:32 GMT)
--------------------------------------------------

In view of François's comment, I think we need to clarify that the "beneficiario" here is the creditor, not the debtor: the party that the guarantee will be paid to if the debtor defaults.

Here's a nice, simple explanation of the Spanish terms:

" ¿Qué partes intervienen en un aval?
Las partes que intervienen son las siguientes:
Avalado: Es la persona que necesita del aval. Es quien quiere arrendar, comprar un bien, etc. y le exigen una garantía de cumplimiento por medio de un aval.
Avalista: es quien garantiza por medio del aval, y ante el beneficiario (arrendador, banco, etc.), que a lo que se ha comprometido el avalado se va a cumplir.
Beneficiario del aval: es ese arrendador, ese banco, esa administración pública, etc. que ha solicitado al avalado la presentación de un aval para asegurarse que el avalado cumplirá sus obligaciones."
http://www.edufinet.com/edufinext/index.php/avales/119-que-p...
Selected response from:

Charles Davis
Spain
Local time: 09:46
Grading comment
It makes total sense that the beneficiary of the guarantee is the lender, and those are really the only three parties involved in this kind of transaction (guarantor, guarantee holder, lender). Thank you.

4 KudoZ points were awarded for this answer



Summary of answers provided
3 +4that the guaranteed party may have contracted with the guarantee beneficiary
Charles Davis
4 -1that the guarantee beneficiary would have incurred with the benefit of a guarantee.
Francois Boye


Discussion entries: 5





  

Answers


3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
that the guarantee beneficiary would have incurred with the benefit of a guarantee.


Explanation:
Erratum: BENEFICIO DEL AVAL instead of 'beneficiario del aval'

--------------------------------------------------
Note added at 5 hrs (2018-04-22 18:48:52 GMT)
--------------------------------------------------

Erratum: THE BENEFIT OF THE GUARANTEE" instead of 'the benefit of a guarantee'

--------------------------------------------------
Note added at 7 hrs (2018-04-22 20:50:18 GMT)
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You can incur debts with the benefit of a guarantee if you can find a guarantor to provide you with the financial trustworthiness you don't have (your debts will be repaid by your guarantor if you cannot pay).

As to the subjunctive tense in Spanish, it is necessary in a relative (subordinate) clause to express a future or a conditional tense in French or English.

Francois Boye
United States
Local time: 03:46
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 65

Peer comments on this answer (and responses from the answerer)
neutral  AllegroTrans: How does anyone incur debts "with the benefit of a guarantee"? Does that make sense? And what justification is there for the verb tense you have suggested?/// have another look at the meaning of "beneficiario"
4 hrs
  -> see above!

disagree  Robert Carter: Charles’ answer is right, this is wrong in various ways.
12 hrs
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10 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +4
that the guaranteed party may have contracted with the guarantee beneficiary


Explanation:
As I understand it, the "avalista" is the guarantor (the party that provides the guarantee or surety), the "avalado" is the guaranteed party (i.e., the secured debtor, whose debt is covered by the guarantee), and the "beneficiario" is the creditor, the party to which the guarantee is paid if the guaranteed party fails to meet its obligations.

This is about Polish law:

"A 'corporate guarantee' is a promise by a third party (the guarantor) to meet the obligations of the guaranteed party to the beneficiary in the event that the guaranteed party fails to meet its obligations."
http://www.internationallawoffice.com/Newsletters/Corporate-...

And this is about Spanish law:

"What happens if the beneficiary of a bank guarantee or other surety decides to enforce it against a payment default by a debtor who has been declared insolvent? This is a crucial question not only for the beneficiary of the guarantee but also the granter thereof – in many cases a financial institution. Neither one nor the other should be unaware of the consequences if their debtor and guaranteed party, respectively, is declared to be insolvent."
https://www.hg.org/article.asp?id=20194

--------------------------------------------------
Note added at 12 hrs (2018-04-23 01:48:32 GMT)
--------------------------------------------------

In view of François's comment, I think we need to clarify that the "beneficiario" here is the creditor, not the debtor: the party that the guarantee will be paid to if the debtor defaults.

Here's a nice, simple explanation of the Spanish terms:

" ¿Qué partes intervienen en un aval?
Las partes que intervienen son las siguientes:
Avalado: Es la persona que necesita del aval. Es quien quiere arrendar, comprar un bien, etc. y le exigen una garantía de cumplimiento por medio de un aval.
Avalista: es quien garantiza por medio del aval, y ante el beneficiario (arrendador, banco, etc.), que a lo que se ha comprometido el avalado se va a cumplir.
Beneficiario del aval: es ese arrendador, ese banco, esa administración pública, etc. que ha solicitado al avalado la presentación de un aval para asegurarse que el avalado cumplirá sus obligaciones."
http://www.edufinet.com/edufinext/index.php/avales/119-que-p...

Charles Davis
Spain
Local time: 09:46
Native speaker of: Native in EnglishEnglish
PRO pts in category: 300
Grading comment
It makes total sense that the beneficiary of the guarantee is the lender, and those are really the only three parties involved in this kind of transaction (guarantor, guarantee holder, lender). Thank you.

Peer comments on this answer (and responses from the answerer)
neutral  Francois Boye: Finance does not work that way! THe guarantor is not a credit provider. Instead, he /she substitutes for the guarantee beneficiary if he/she defaults//the beneficiary is the one who incurs a debt/debts
2 hrs
  -> I did not say that guarantors provide credit; I said they provide guarantees or sureties. Guarantors substitute for the debtor (the guaranteed party), not the beneficiary. // No, the "beneficiario de la garantía" here is the lender, not the borrower.

agree  Robert Carter: Absolutely.
5 hrs
  -> Thanks, Robert!

agree  AllegroTrans
11 hrs
  -> Thanks, Chris!

agree  Andy Watkinson
15 hrs
  -> Thanks, Andy :-)

agree  Manuel Cedeño Berrueta
20 hrs
  -> Thanks, Manuel :-)
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