Since the Law of 10 July 2020 introduced the professional payment guarantee, there is a new mechanism in Luxembourg’s legal arsenal allowing redress of the loophole in positive law with respect to independent guarantees (garanties autonomes).
With the increasing importance of guarantees in financial transactions and the increasing risks, it is henceforth necessary to understand the differences between sureties (cautionnements), independent first demand guarantees (garanties autonomes à première demande) and professional payment guarantees (garanties professionnelles de paiement).
During this presentation, you will receive an overview of the different guarantees under Luxembourg law as well as their main characteristics and applications.
- Distinctions between sureties, first demand guarantees and professional payment guarantees; and
- The new uses in practice of these different types of guarantees.
- Learn the differences between sureties and independent guarantees;
- Understand the innovations of the Luxembourg professional payment guarantee introduced by the Law of 10 July 2020;
- Discover the main characteristics and possible uses of professional payment guarantees;
- Identify the conditions for the application of the Law of 10 July 2020 on professional payment guarantees;
- Safeguard contracts and their guarantees to avoid requalification; and
- Benefit from the experience of DSM Avocat à la Cour’s attorneys since the entry into force of that law.
- Founding partner of DSM Avocats à la Cour, Mario DI STEFANO is the head of the Corporate / M&A, Tax and Real Estate departments. Mario advises national and international clients in the context of acquisitions, sales and restructurings of businesses. He also assists his clients in the context of private equity and corporate finance transactions, and more specifically in the context of transactions for the acquisition or sale of real estate and the development of complex real estate projects. Moreover, Mario represents his clients in civil, commercial, administrative and fiscal disputes.
- Marie-Paule GILLEN joined DSM Avocats à la Cour as partner in 2012 and since then has headed the Banking & Finance department. After having exercised leadership mandates in the KBL Group throughout Europe and as a member of the BCE’s Committee of Jurists for European Financial Markets, Marie-Paule retained those of President of AEDBF Luxembourg, member of the BCL’s Legal Committee, AEDBF Europe and the Cercle Munster’s Boards of Directors. Since May of 2019, she is also a director on the BCEE’s board.