2. Financial guaranteeWATA gives a financial guarantee covering transactions between its members and IHA member hotels.
3. Amount of the guarantee
4. Reduction of the amount of the guaranteeIn the event of payment under this guarantee, the total amount thereof shall be reduced by the amount paid. If the amount is completely utilised, the guarantee is automatically cancelled, unless both parties agree to its renewal.
If the amount of guarantee is partly utilised:
5. Duration of the agreementThis guarantee agreement is concluded for two years as of 27 March 1992. Six months before it expires, each party is entitled to cancel it or to request its modification. This must be done by registered letter. If no modification or cancellation is requested, the agreement is automatically renewed for a two-year period, subject to the terms of article 4.
6. WATA obligationsWATA shall provide IHA with a list of its members and shall keep IHA informed of modifications to this list.
7. IHA obligationsIHA shall periodically draw the attention of its members to the present agreement and shall provide them with a list of WATA agencies and notify them of any changes thereto. IHA shall provide WATA members with a list of IHA members at a preferential rate. IHA will ask its members to display the WATA sticker.
8. Termination of the guaranteeWhen a travel agency is no longer in WATA membership (due to resignation, exclusion or bankruptcy), the General Secretariat of WATA shall inform the IHA General Secretariat by telex within 48 hours. The IHA will inform its members as soon as possible. If it cannot do so within two months, on the occasion of one of its regular communications to its members, WATA will pay for the dispatch of the notification or else will extend the two months notice. The guarantee will remain in force as long as IHA members have not been informed of the termination of the guarantee.
9. Validity of terms of the guaranteeThe guarantee of payment granted by WATA is subject to the following conditions.
10. Procedure in case of non-payment by a WATA agencyIn the event of non-payment by a WATA agency, the IHA member hotel shall send at least two reminders - to the agency (with possibly a copy of the last reminder to WATA and IHA Headquarters). The hotel shall send to WATA headquarters, by registered letter, a copy of the documents proving the debt of the defaulting agency.
In every case, WATA headquarters must be informed of the non payment by a WATA agency not later than four months after the departure of the guests.
11. Payment of the amount of the debt out of the guarantee fundAs soon as the validity period stipulated in article 9 is terminated, and after verifying the accuracy of the amount claimed by the hotel against the WATA agency and that the hotel has respected the procedure mentioned in article 10, WATA Headquarters shall immediately reimburse the hotelier for the amount of the bill up to a maximum of Sfr30,000 per agency.
12. Payment of the guarantee in the event of bankruptcy of a WATA agencyIf a WATA agency declares bankruptcy, WATA Headquarters shall make a partial payment to IHA member hotel with a debt claim again this agency calculated according to the amounts likely to be paid to the hotels by the liquidator.
The balance shall only be due after the payment of dividends by the liquidator.
13. Correspondence concerning the agreementAll correspondence concerning this agreement shall be sent to the headquarters of both organisations by ordinary post (except in the circumstances mentioned in article 5 and 10).