Block Guarantees - The Rural Payments Agency
Block Guarantees - The Rural Payments Agency
Block Guarantees - The Rural Payments Agency
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RURAL PAYMENTS AGENCY<br />
Lancaster House, Hampshire Court, Newcastle upon Tyne, NE4 7YH<br />
NOTICE TO TRADERS 07/12<br />
21 March 2011<br />
ALL TRADERS<br />
CHANGES TO BLOCK GUARANTEE SYSTEM<br />
Introduction<br />
This Notice is to inform you of changes to the <strong>Block</strong> Guarantee system. <strong>Block</strong><br />
Guarantee holders will now be able to nominate the specific guarantee from which<br />
they wish a debit to be taken.<br />
Background<br />
A <strong>Block</strong> Guarantee is a facility whereby a trader arranges with an RPA approved<br />
guarantor (this can be a bank or insurance company) to guarantee a sum of<br />
money. Transactions can then be debited and credited when payment of securities<br />
is required. Additional guarantees can be added, each having their own unique<br />
number. This is a quick and effective means of paying securities.<br />
Further information on setting up a <strong>Block</strong> Guarantee can be found on the<br />
<strong>Guarantees</strong> and Securities section of our website. <strong>The</strong> Guarantee Section can be<br />
contacted on 0118 953 1211 or by e-mail: <strong>Block</strong>.<strong>Guarantees</strong>Rdg@rpa.gsi.gov.uk<br />
Current System<br />
<strong>The</strong> <strong>Block</strong> Guarantee system pools all guarantees under a trader’s block guarantee<br />
number. <strong>The</strong> system debits against the earliest guarantee where there is an<br />
available balance.<br />
This has historically presented a problem for traders who have guarantees which<br />
are set up for specific companies, as the system was unable to target specific<br />
guarantees.<br />
In recognition of this difficulty a change has been made to the system to allow<br />
specific guarantees to be debited. This will provide greater flexibility for our<br />
customers.<br />
New Procedures<br />
You now have the option to specify the guarantee number on the licence<br />
application form. In box 11 of the form you should state:<br />
• the amount of security expressed in the same unit of currency that your<br />
guarantee is lodged
• the trader registration number of the block guarantee to be used<br />
• the five digit guarantee number (if you want to target a specific guarantee)<br />
Questions<br />
If you have any questions please contact your usual commodity section contact or<br />
the External Trade Helpline on 0191 226 5050.
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