Payment Demand for Counter-Guarantee | Practical Law

Payment Demand for Counter-Guarantee | Practical Law

A form of payment demand to be used in making a demand for payment under a counter-guarantee. Because a counter-guarantee supports the issuance of a demand guarantee, the payment demand under a counter-guarantee is made by the guarantor in the underlying demand guarantee. The guarantor addresses its payment demand to the counter-guarantor and makes its demand following its own receipt of a payment demand from the beneficiary in the underlying demand guarantee. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Payment Demand for Counter-Guarantee

Practical Law Standard Document w-031-9381 (Approx. 9 pages)

Payment Demand for Counter-Guarantee

by Practical Law Finance
MaintainedUSA (National/Federal)
A form of payment demand to be used in making a demand for payment under a counter-guarantee. Because a counter-guarantee supports the issuance of a demand guarantee, the payment demand under a counter-guarantee is made by the guarantor in the underlying demand guarantee. The guarantor addresses its payment demand to the counter-guarantor and makes its demand following its own receipt of a payment demand from the beneficiary in the underlying demand guarantee. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.