Fee for changing security or contract terms

The fee for changing security or contract terms is charged to cover the cost of the formalities to be performed by the bank when the content of the contract is changed, and the analysis of the risk that such change may entail for the bank.

When the guarantee contract terms are changed, the bank, because it performs a new risk analysis and the procedures arising from the change to the contract, tends to charge a fee that is normally a fixed amount, a percentage of the outstanding amount of the transaction or, if there is an increase in the amount or risk of the transaction, a percentage referenced to this additional amount. 

What requirements must your bank meet in order to charge this guarantee change fee?

• Remember that the fees charged by banks are unrestricted, except in the case of certain fees that are limited by law.
• In the case of the guarantee change fee, there is no limit, so each bank can establish the fee it chooses.
• Also, in order for the bank to be able to charge this change fee, it must be expressly stated in the guarantee contract signed by the parties, in which it must specify the fee amount and when it can be applied.