Performance bonds, bank guarantees and standby credits | Practical Law

Performance bonds, bank guarantees and standby credits | Practical Law

This note explains the difference between bank guarantees, performance bonds and standby letters of credit. It describes the rules and principles governing bank guarantees and performance bonds, the functions of different types of bonds and guarantees and the function of standby letters of credit.

Performance bonds, bank guarantees and standby credits

Practical Law ANZ Practice Note w-012-7777 (Approx. 16 pages)

Performance bonds, bank guarantees and standby credits

by Practical Law Banking and Finance with assistance from Bill Chapman, Consultant, Sparke Helmore
Maintained • Australia
This note explains the difference between bank guarantees, performance bonds and standby letters of credit. It describes the rules and principles governing bank guarantees and performance bonds, the functions of different types of bonds and guarantees and the function of standby letters of credit.