Transferable 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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simcorporate
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Transferable guarantee

Post by simcorporate » Mon Oct 02, 2017 11:06 am

Dear Experts, what are the main risks for the beneficiary to accept transferred guarantee?

Best regards,

Simcorporate

matinya
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Re: Transferable guarantee

Post by matinya » Tue Oct 03, 2017 12:01 am

Hi,

The risk that i can imagine is receiving the transferred guarantee which probably has not satisfied conditions for their transfer, such as it has to be transferred by a certain date only, or say to only one transferee

doomsayer
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Risk in case of guarantee cancellation

Post by doomsayer » Tue Oct 03, 2017 9:29 pm

one of the risks is that when the applicant would like to cancel the the guarantee (gte), it's necessary to collect Ben's consent; however the ben of the gte is another party in case of transferable gte. Therefore, the applicant face the difficulty to chase the transferred ben while the related charge/ fee is being born by the issuing bank or there is available credit utilised for contingent liability.
other viewpoints appreciated, thanks

dv01001
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Re: Transferable guarantee

Post by dv01001 » Tue Oct 03, 2017 10:57 pm

there is additional risk for the applicant: the applicant may not know the credit standing or reliability of the supplier, or even their name

simcorporate
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Re: Transferable guarantee

Post by simcorporate » Mon Oct 09, 2017 8:42 am

Thank you very much for your comments.
But what are the risks for beneficiary?
Applicant has lots of risks but beneficiary?
Best regards,
Simcorporate

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