ICC Digital Library Forum

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

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