Default of Issuer

With the introduction of Uniform Rules for Documentary Guarantee or URDG 758, the rules for Documentary Guarantee seem to be popular again. It can be imagined from the increasing number of questions that have popped up in recent days. Documentary Guarantee Forum is an effort to develop a platform to discuss these questions.
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RaoulC
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Default of Issuer

Post by RaoulC » Thu Oct 22, 2020 4:37 pm

Hello,

Let's say we have an indirect guarantee with a bank A as counter guarantor and a bank B as Issuer.
What would happen if bank B defaults ?
Would the beneficiary be able to claim to counter guarantor ? or should the beneficiary sort out the situation with applicant directly ?

Thank you in advance
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