counter guarantee definition

counter guarantee

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).

counter guarantee is in the Agreements & Contracts and Banking, Commerce & Finance subjects.

counter guarantee appears in the definitions of the following terms: indirect bank guarantee and demand guarantee

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