Claiming on applicant

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Shahed
Posts: 168
Joined: Fri Apr 05, 2019 5:26 pm

Claiming on applicant

Post by Shahed » Wed Aug 26, 2015 1:00 am

Bank A has issued a local guarantee against a counter guarantee of Bank B located in different country.

Complying demand has been presented by the beneficiary to Bank A for payment, and Bank A in-turn claimed reimbursement from Bank B, and it came to know that Bank B is no more in business, declared bank-ruptcy.

My question is can Bank A claim reimbursement from the aplicant of the instrument (located in Bank B's country) ? Needless to mentioned that Bank A has honored the claim submitted by the beneficiary.

Regards,

Shahed
asamaha
Posts: 197
Joined: Fri Apr 05, 2019 5:16 pm

Claiming on applicant

Post by asamaha » Thu Aug 27, 2015 1:00 am

If permitted under the applicable law, the guarantor can avail itself of a direct claim as subrogee against the applicant by using the claims available to the paid beneficiary against the applicant arising under the underlying relationship.

Regards
Antoine
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