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
- 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.)
Apr 22, 2018 13:10
6 yrs ago
1 viewer *
Spanish term
que haya podido contraer el avalado con el beneficiario del aval
Spanish to English
Bus/Financial
Business/Commerce (general)
Transfer pricing master file
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.
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.
Proposed translations
+4
10 hrs
Selected
that the guaranteed party may have contracted with the guarantee beneficiary
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...
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...
Peer comment(s):
| 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 :-)
|
4 KudoZ points awarded for this answer.
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.
"
-1
3 hrs
Francois Boye
United States
United States
Specializes in field
United States
An economic geek with social skills
Native in: French 
Works in: English to French, French to English, Spanish to English, and 1 more.
Related KudoZ points
:
89
that the guarantee beneficiary would have incurred with the benefit of a guarantee.
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)
--------------------------------------------------
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.
--------------------------------------------------
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)
--------------------------------------------------
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.
Peer comment(s):
| 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
|
Discussion
Your rendering is a complete mistranslation of the phrase in question here. You have the "avalado" as the guarantee's beneficiary and the "beneficiario del aval" as the "benefit of a guarantee" because you believe "beneficiario" to be a mistake, whereas the word "beneficiario" actually makes perfect sense here.
As for the verb, again I must agree with Charles: it should be "may have" (literally "may have been able to"), not "would have".
Assuming the lender/creditor is a bank, as it often will be, then if the debtor defaults, the bank calls in the guarantee. So of course it benefits from it.
For example, a bank or lender (the "beneficiario del aval" or "beneficiary of the guarantee") gives me a loan on the understanding that I (the "principal obligor" or "avalado") am providing it with a guarantee ("aval") of repayment or collateral from a third party (the "guarantor" or "avalista").