Effectiveness of 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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dyco
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Effectiveness of guarantee

Post by dyco »

Hi Expert

Under URDG758, is it possible to issue guarantee with individual/personal as beneficiary/applicant?any consequences may arise?

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DS
matinya
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Re: Effectiveness of guarantee

Post by matinya »

Yes, it is possible to issue a guarantee to an individual as both applicant or beneficiary.

If the individual is applicant, you need to satisfy yourself with creditworthness of the applicant and their indemnity to you.
To beneficiary, there is no consequence since the position of the beneficiary is the same on both cases just with little observation that individuals are likely to default on their obligation compared to the company
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