Independance of counter Guarantee

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
dinesh2476
Posts: 727
Joined: Sat Oct 15, 2011 12:27 pm
First Name: Dinesh Kumar
Last Name: ...
Organization: Chrome
Filter: Two Plus Two =: 4
Location: PU

Independance of counter Guarantee

Post by dinesh2476 » Mon Aug 26, 2019 11:32 pm

Dear Experts,

consequences of the independence of the counter guarantee as follows:

Each undertaking in subject only to its own terms, which do not have to mirror each other. Thus.


1. An accessory surety ship can be counter-guaranteed by an independent counter-Guarantee. -

what does this clause mean.

In the event of payment by the guarantor for the fraudulent claim made by the beneficiary unknowingly, does the guarantor has the right of reimbursement from the counter guarantor.

what i see here is surety ship is more stronger than guarantee, and the guarantee is issued basis surety ship rather than counter guarantee

Please acknowledge.

Thanks & Regards
Dinesh Kumar

Post Reply