Interest In Case Of Delayed Payment Under Guarantee

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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ANGE
Posts: 17
Joined: Sun Apr 15, 2012 12:05 am
First Name: ANGE
Last Name: CUBEDDU
Organization: COMPANY
Filter: Two Plus Two =: 4
Location: FRANCE

Interest In Case Of Delayed Payment Under Guarantee

Post by ANGE »

HI,

let me have your advice

Generally speaking, if the guarantor in a bank guarantee pays late, the beneficiary or the counter-guarantor, or in the case of an L/C, the issuing bank pays late to a confirming bank, or the confirming bank pays late to the beneficiary, are they obliged to pay interest for the delay? Is it usual that they pay an interest rate in case of late payment? Which rate will apply in that case?
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picant
Posts: 1942
Joined: Wed Aug 20, 2008 1:49 pm

Grace days

Post by picant »

Hi Pal,

a bank may calculate a normal delay in being paid. If this results bigger a refund may be requested to the banks that delayed the payment. The rate may be indicated in the BG or calculated at an interbank rate or per agreement.

PS Are you from Marseille, there it is a street called Cubeddu Freres?

Ciao
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