Saturday, 5 May 2018

CHAPTER 31 - CYCLE OF GUARANTEES
•     Step 1: Principal and beneficiary get into a contract which will be demanding a bank guarantee.
•     Step 2: Principal approaches Guarantor to issue a Demand Guarantee in favor of the beneficiary. On this stage principal must supply the terms and conditions of the guarantee to the guarantor by the help of the Bank Guarantee Application Form.
•     Step 3: Guarantor issues the bank guarantee in swift format and sends it via secure online swift platform to the advising bank which is located in the beneficiary’s country.
•     Step 4: Advising bank advices the bank guarantee to the beneficiary in online means.

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