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Effectiveness of guarantee

Posted: Sun Jun 04, 2017 3:03 pm
by dyco
Hi Expert

Under URDG758, is it possible to issue guarantee with individual/personal as beneficiary/applicant?any consequences may arise?


Re: Effectiveness of guarantee

Posted: Tue Oct 03, 2017 12:03 am
by matinya
Yes, it is possible to issue a guarantee to an individual as both applicant or beneficiary.

If the individual is applicant, you need to satisfy yourself with creditworthness of the applicant and their indemnity to you.
To beneficiary, there is no consequence since the position of the beneficiary is the same on both cases just with little observation that individuals are likely to default on their obligation compared to the company