counter guarantee

  

Definition

Back-to-back guarantee given by an obligor to indemnify a surety in a three-party contract (such as a performance bond). A counter guarantee is cashed in the unexpected event the obligor fails in the performance of a contract and the obligee calls upon the surety to honor the bond (guaranteed by the surety on behalf of the obligor). Also called counter indemnity.

Related Videos




http://www.businessdictionary.com/definition/counter-guarantee.html

Have a question about counter guarantee? Ask for help in the
Community
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z