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Interest In Case Of Delayed Payment Under Guarantee

Posted: Sun Oct 23, 2016 9:16 pm

let me have your advice

Generally speaking, if the guarantor in a bank guarantee pays late, the beneficiary or the counter-guarantor, or in the case of an L/C, the issuing bank pays late to a confirming bank, or the confirming bank pays late to the beneficiary, are they obliged to pay interest for the delay? Is it usual that they pay an interest rate in case of late payment? Which rate will apply in that case?

Grace days

Posted: Mon Oct 24, 2016 5:45 pm
by picant
Hi Pal,

a bank may calculate a normal delay in being paid. If this results bigger a refund may be requested to the banks that delayed the payment. The rate may be indicated in the BG or calculated at an interbank rate or per agreement.

PS Are you from Marseille, there it is a street called Cubeddu Freres?