Bank guarantee: Difference between revisions
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imported>Doug Williamson (Create page. Sources: linked pages and CFI webpage https://corporatefinanceinstitute.com/resources/knowledge/credit/bank-guarantee/) |
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Revision as of 23:51, 21 March 2021
Trade finance.
A guarantee issued by a bank, in support of a commercial transaction.
The gaurantee is a secondary obligation of the bank, called upon only in the event of the failure of a party to the commercial transaction.
Contrasted with a letter of credit, which is a primary obligation of the bank.
