Counter-indemnity: Difference between revisions

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imported>Doug Williamson
(Note sometimes known as 'indemnity'.)
imported>Doug Williamson
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* [[Multilateral netting]]
* [[Multilateral netting]]
* [[Performance bond]]
* [[Performance bond]]
* [[Performance guarantee]]
[[Category:Manage_risks]]

Latest revision as of 19:26, 4 March 2023

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'.


See also