Demand Guarantee check0 / 1 answered · 0 correct
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Who normally has the right to demand payment under the guarantee?
Who is Who in a Guarantee?
Learn the applicant, beneficiary, guarantor, instructing party and counter-guarantor roles.
Applicant
The applicant is normally the party whose obligation is supported by the guarantee. It asks for the guarantee or causes it to be arranged.
Beneficiary
The beneficiary is the party in whose favour the guarantee is issued and is normally the party entitled to make a demand if the terms allow.
Guarantor
The guarantor issues the undertaking. Often this is a bank, although URDG 758 can apply to a demand guarantee issued by another guarantor if the guarantee incorporates those rules.
Instructing party and counter-guarantor
In indirect structures, one bank may issue a counter-guarantee to another bank that issues the local guarantee. The parties and undertakings must be read separately.
Remember thisApplicant, beneficiary, guarantor and counter-guarantor are different roles; do not merge them into “the bank.”
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