Process of Guarantee Release

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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ramarayudu
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Joined: Fri Apr 27, 2012 12:18 pm
First Name: Rama Rayudu
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Process of Guarantee Release

Post by ramarayudu »

Hello All,
Can anybody explain what usually is the process of Guarantee Release and can a beneficiary bank send MT769 message for release when claim is honoured under the guarantee.
mandeep
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First Name: mandeep
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release of Guarantee

Post by mandeep »

hello,

the normal process of guarantee release is to receive release letter from beneficiary, after which guarantee can be released. there may be partial release of total guarantee amount, under this case remaining guarantee amount will be live.
if total amount is claimed and honored then no need of MT 769 as there is no more liability. if guarantee claim is for partial amount which is honored, then MT 769 is needed to release balance guarantee amount

thanks
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