Counter-indemnity: Difference between revisions
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imported>Doug Williamson (Create page. Source: Barclays webpage https://www.barclayscorporate.com/information/bgitandc.html) |
imported>Doug Williamson (Note sometimes known as 'indemnity'.) |
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If the performance bond is called, we must indemnify the bank under the counter-indemnity. | If the performance bond is called, we must indemnify the bank under the counter-indemnity. | ||
A counter-indemnity is sometimes also known more simply as an 'indemnity'. | |||
Revision as of 19:03, 22 June 2017
A counter-indemnity is an obligation to make a reimbursement in relation to a primary indemnity, guarantee, bond or any similar arrangment.
For example, we may be a corporate supplier in a commercial contract.
As part of the contractual arrangements, our bank may issue a performance bond to our customer.
This gives rise to a contingent liability for our bank.
The bank will require a counter-indemnity from ourselves, in favour of the bank.
If the performance bond is called, we must indemnify the bank under the counter-indemnity.
A counter-indemnity is sometimes also known more simply as an 'indemnity'.
