Advance payment Guarantee (reducing)

WARLORD9609 · Post by **WARLORD9609** » Wed Mar 14, 2012 9:16 pm

I have a very good case happening to me.

We issued advance payment guarantee amounting USD 1,000,000/-, the amount will reduce each time until it reaches zero.

Now the contractor called me saying that the amount of the guaranatee must reduce by USD 200,000, he requested to reduce the liability from our side.

I said ok no problem, but I need a letter from the beneficiary signed and stamped confirming that part of the project has finished which is amounting usd 200,000.

My question is, the beneficiary is not our client and I cant verify their signature on the reduction letter, contractor may make-up a forged letter which is easy nowadays, what are the best practices in banks nowadays to verify signature under the above scenario?

Thanks.

picant · Post by **picant** » Thu Mar 15, 2012 1:26 am

Hi Pal,

assuming that beneficiary is in your Country, you may opt for an authentication by a bank or public notary, if beneficiary is located abroad you may further use Diplomatic Services or a so called Apostille, if available.
Other comments appreciated
Ciao

WARLORD9609 · Post by **WARLORD9609** » Thu Mar 15, 2012 2:32 am

Thanks for the reply,

1. What is apostile?
2. Beneficiary is outside my country, Beneficiary's bank not dealing with our bank whatsoever, so its hard for me to verify signature, what shall we do?

Thanks

leekaiyin55 · Post by **leekaiyin55** » Thu Mar 15, 2012 4:45 pm

Dear Pals,

Is there any disclaimer or provision nder the said BG? We'd better go through the whole BG before we can make comments and access the risks.
Nevertheless, it is good to have beneficiary's instruction through their banker by authenticated swift.

Thank you.

picant · Post by **picant** » Thu Mar 15, 2012 8:12 pm

Hi Pals,

Visit Apostilleinfo.com for further details.

Ciao