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/) |
imported>Doug Williamson m (Typo correction.) |
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A guarantee issued by a bank, in support of a commercial transaction. | A guarantee issued by a bank, in support of a commercial transaction. | ||
The | The guarantee 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. | Contrasted with a letter of credit, which is a primary obligation of the bank. | ||
Latest revision as of 17:02, 25 March 2021
Trade finance.
A guarantee issued by a bank, in support of a commercial transaction.
The guarantee 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.
