Film Completion Guarantee Agreement

After reviewing these key elements, the graduate guarantor will intend to meet with members of the production team, such as the producer, director and production manager, to obtain their views on the production budget, recording plan and other production issues. Sometimes the manufacturer decides to adapt the elements in light of the risk manager`s recommendations. Based on these meetings and the final documents submitted, the final guarantor determines whether the production in the presented version can be produced, completed and delivered. If the bid is approved, the final guarantor prepares the successful guarantee agreement and other necessary legal documents. In general, a closing obligation insures banks and financiers: the closing guarantor takes special care of the budget and examines it carefully to ensure that all expenses that, according to the final guarantor, are necessary for the production and delivery of the film are planned. If the final guarantee finds a defect, the final guarantor may require the producer to increase the estimated amount for a given position or, if a position has been omitted, the guarantor may require that a provision be provided for the position. In general, the closing guarantee will also insist on adding a 10% emergency to the budget. If the producer and/or director do not have a proven balance sheet, the guarantor may ask for a greater eventuality. It is important to note that we only recognize 60% of the DTI rebate for the film financing plan, since the previous 40% arrives only after delivery (in accordance with the new DTI guidelines with effect from September 2018). We can calculate this amount as soon as we receive your DTI authorization letter. Since the reputation of the producer and director is involved and may be compromised in the event of a complete acquisition and the film may become negative, which has an impact on the final success of the film, the parties generally try to respond to the „proposals“ of the final guarantor through the flexible acquisition mechanism, instead of forcing the final guarantor to assume it completely. : A closing guarantee is a bond granted by the surety for a film to be completed within the agreed schedule. This guarantee is given to the film`s financier and protects the financier from overruns that lead to increased costs and increased financing needs.

Description: The guarantor gives the financier, with payment of a royalty, the guarantee that the film will be composed before the royalty is set for a given production, the final guarantor takes into account several factors, including the experience of the director and the production team, the budget of the film and the associated production risks. As a result, fees vary from film to film. Although the guarantee fee is sometimes flat-rate, it is generally expressed as a percentage of direct production costs (i.e. all production costs other than procurement, interest and financing costs, and guarantee costs). It is important to obtain a credible closing guarantee company, even if reinsurance minimizes the need to focus on the financial situation of the final guarantor, since the final guarantor may still be required to lend money to the producer to cover amounts that go beyond the budget. In addition to relying on the final guarantor to intervene and solve financial problems, the financier often turns to the final guarantor to take on various other positions, including production management and control of the status of production. In addition to ensuring that funding is available, the final guarantor also determines liability after receiving the fee.