Bank Guarantee

详情

A bank guarantee is issued by the bank on behalf of its customer, i.e. your company, for the benefit of a domestic beneficiary is usually directly enforceable and accessory to the principal obligation. In other words, the beneficiary has the right to claim its due receivables either from your company or directly from the guarantor bank. The bank is then able to present the same claims to the beneficiary as your company. In case of a surety, the bank is entitled to restrain payment to the beneficiary until your company's obligation to pay on the basis of a contractual relationship has been established. Sureties are governed by the Act on Guaranties and Third-Party Pledges (*9.3.***9/**1).