Dear All
your urgent reply is a highly appraciated ,
I issued a bank guarantee against a counter guarantee from another bank,this counter guarantee is subject to URDG758 ,we have received a valid complied claim from the beneficiay and claimed the counterguarantee amount accordingly.
the applicant went immediately to the court in their country and the court ordered the counter guarantor not to pay or extend, which inform us their inability to extend or pay.
now the beneficiary is insisting to extend or pay.
now my question is:
Can a Counter guarantor escape from their obligation just by saying that they received a court order from not concerned court.
and what should by my next step?
regards
JOJO
Court Ordered Not To Pay Under Counter Guaratee
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jojo
- Posts: 4
- Joined: Tue May 31, 2016 6:24 pm
- First Name: GELLA
- Last Name: CHERY
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- Location: libya
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Counterguarantee....
Hi Pal,
in issuing your guarantee you granted a credit line to the counter guarantor, the foreign bank.
Now you have to pay and the foreign bank states that o Court Order seized the amount due of intimated the foreign bank not to pay. This is, unfortunately, a question of your legal office, that should be able to contrast the Court order, demonstrating that the claim has been effected regularly and no fraudolent. As bank you are aware that every amount of money granted is a potential risk.
I dont know about the Countries involved but, there are Countries, where such Order are issued freely, but the most of Courts issued such order on the basis of documents and actions.
Legal department will contact, via lawyers, the issuing Court and will be able to show that you acted in Bona Fide etc.
However this will be a long story and probably will cause a bank relationship problem
.
in issuing your guarantee you granted a credit line to the counter guarantor, the foreign bank.
Now you have to pay and the foreign bank states that o Court Order seized the amount due of intimated the foreign bank not to pay. This is, unfortunately, a question of your legal office, that should be able to contrast the Court order, demonstrating that the claim has been effected regularly and no fraudolent. As bank you are aware that every amount of money granted is a potential risk.
I dont know about the Countries involved but, there are Countries, where such Order are issued freely, but the most of Courts issued such order on the basis of documents and actions.
Legal department will contact, via lawyers, the issuing Court and will be able to show that you acted in Bona Fide etc.
However this will be a long story and probably will cause a bank relationship problem
.