Counter-indemnity
From ACT Wiki
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'.
