Bank Guarantee: Difference between revisions
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Latest revision as of 11:39, 13 February 2020
Definition
Bank Guarantee. It is a Financial Instrument issued by a financial institution on behalf of its customer for the benefit of another party to whom the financial institution's customer has a contracted financial obligation.
In the event that the financial institution's customer does not pay on a contract, the beneficiary of the financial institution guarantee can draw on the financial institution guarantee and be paid.