Counter-Guarantee

Summary

This counter-guarantee template may be used in a domestic or international transaction that requires a counter-guarantor to guarantee or indemnify a guarantor for payment or performance by the applicant. This template includes practical guidance, drafting notes, and optional clauses. This counter-guarantee includes a clause making it subject to the Uniform Rules for Demand Guarantees 2010 Revision, ICC Publication No. 758 (URDG 758). While the URDG 758 is not law, the vast majority of counter-guarantees currently being issued include a provision making the counter-guarantee subject to the URDG 758. The capitalized terms used in this template should be conformed to the defined terms in other relevant agreements between the parties. Other appropriate modifications also should be made to reflect the specific terms of the transaction. For a demand guarantee template, see Demand Guarantee. For a full listing of key content covering formation, types, and enforceability of guaranties, see Guaranties Resource Kit.