Glossary: Guarantees

Term	Explanation
Advance payment guarantee	See Types of guarantee
Advise	To give information about the guarantee to the beneficiary (person who receives the guarantee) of another bank, without responsibility
Applicant	Person requesting the guarantee
Avalise	To guarantee payment of a draft or bill of exchange; used in certain cases instead of a payment guarantee
Beneficiary	The person in whose favour the guarantee is issued
Bid Bond	See Types of guarantee
Conditional guarantee	The bank awaits agreement between the parties or a judicial decision before paying
Counter-guarantee	When Northern Bank asks a foreign bank to issue a guarantee, the foreign bank will demand a guarantee from Northern Bank as security - a counter-guarantee
Demand guarantee	Claims under the guarantee are paid against a simple declaration of default
Payment guarantee	See Types of guarantee
Performance bond or guarantee	See Types of guarantee
Retention bond or guarantee	See Types of guarantee
Statement	A simple declaration used in connection with claims under demand guarantees
Tender bond	See Types of guarantee
URDG 458	The international guarantee rules. Uniform Rules for Demand Guarantees, ICC Publication No. 458
Unconditional guarantee	See Demand guarantee above
Undertaking	Another word for guarantee

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