The ordering party and the beneficiary must agree on the terms of the guarantee, and the ordering party must then request that their bank issues the guarantee accordingly. The ordering party's bank issues the guarantee through Swift, and it is received immediately by the beneficiary's bank.
The guarantee is communicated to the beneficiary, who should review all the terms to ensure that they correspond with the conditions agreed a priori.
If the underlying transaction is carried out normally, the guarantee will not be executed and will be cancelled at maturity.
If the underlying transaction is not fulfilled, the guarantee shall be executed when the beneficiary presents the required documents. These documents will be forwarded to the issuing bank before the guarantee expires, and the bank will be required to pay.
Stages of an International Guarantee.
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