Transferable guarantee

simcorporate · 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 · 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 · 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 · 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 · 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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