language, original and copy of guarantee

HOANGTHIANHTHU_invalid · Post by **HOANGTHIANHTHU_invalid** » Wed Jul 08, 2009 1:00 am

Can a letter of guarantee be issued in 2 originals (one in English, one in another languague or both in the same language)? Are these 2 originals legally of equal value? Is there any source of law governing this issue? Please help me to give comments on this topic. My thanks and regards

DanielD · Post by **DanielD** » Wed Jul 08, 2009 1:00 am

In my bank, guarantees are issued in one original and therefore in one language. The language will be a national one (French, German) or English. The reason is that we want to control perfectly the language in case of a demand.
Regards
Daniel

ThuHoangAnh_ · Post by **ThuHoangAnh_** » Wed Jul 08, 2009 1:00 am

Hi,

I agree with Daniel that the guarantee should be issued in one original either in national language or in a common international language such as English.

If it is a must for some reason, it should be issued in bilingual format, for instance, with the English text preceding the Vietnamese or vice versus. We sometimes have to construe our guarantees in this manner to comply with the customer’s request.

Best regards,
N.H. Duc

[edited 7/9/2009 1:23:20 AM]

GlennRansier_ · Post by **GlennRansier_** » Thu Jul 09, 2009 1:00 am

In my opinion, the instrument must to subject to a single language. Any other language should be considered a translation meant for information purposes. Every word may not translate in the manner expected and as such one language needs to be the ruling language. Having a single language ensures no misunderstandings. In example, the official language of UCP 600 is English. Even though the document has been widely translated for information and training purposes, it is understand that for interpretation rulings, the English version takes precedence.

HOANGTHIANHTHU_invalid · Post by **HOANGTHIANHTHU_invalid** » Fri Jul 10, 2009 1:00 am

I myself also share the same opion with all of you. However, there some tough customers who insist on guarantee issued in multiple originals, whether in the same or more than one language. So as not to lose customers, some banks in Vietnam are currently agreeing to meet this requirement. Can any one cite some legal argumanet to make defence for our viewpoint?

DanielD · Post by **DanielD** » Fri Jul 10, 2009 1:00 am

I think it is a commercial issue not a legal one as the way you issue your guarantees surely are in accordance with the provisions of your national law
Daniel

GlennRansier_ · Post by **GlennRansier_** » Mon Jul 13, 2009 1:00 am

If you issue multiple originals and in different language, some of the immediate things I believe you need to consider are:
1. Do all original instruments need to be returned with any documentary presentation or will one be sufficient? Similar to a BL do you indicate how many original instruments make up a full set?
2. If the instrument is available with more that one bank how do you ensure that the beneficiary will not commit fraud and draw on differing institutions?
3. How would you manage translation risks between the languages?
4. In a court of law, how do you explain having issued multiple originals, in differing languages with the same instrument control number?
It is an interesting request and there are unnecessary risks associated with issuing multiple instruments. I am not sure that I would accept those kinds of needless risks.

HOANGTHIANHTHU_invalid · Post by **HOANGTHIANHTHU_invalid** » Tue Jul 28, 2009 1:00 am

Thank all for your comment