Credit Lining a bank guarantee

If you intend to monetize or credit line a Bank Guarantee that you have received (or due to receive), it is important to ensure that the Guarantee contains no onerous conditions and that it is worded specifically for monetizing. Draft Bank Guarantee wordings specifically used for securing credit lines can be downloaded from Downloads centre. These draft documents are accepted by mainstream banks for monetizing. Drawing credit lines against a Bank Guarantee that is conditional upon satisfaction of an action or other document may not be possible. For example, if you have a Conditional Payment Guarantee or a Rent Guarantee, a lending bank will not accept to credit line it as it cannot be considered as suitable security. Generally, the purpose and intent of a Bank Guarantee should be made clear from the outset. If your intention is to monetize or credit line the Guarantee, then the Guarantee should be specifically worded for this purpose. If it is not, then you may very well find the Guarantee is worthless. It would also be advisable to negotiate credit lines in advance of receiving the Guarantee. To provide draft wording to a potential lender and obtain his tentative