Bank Guarantee Wording

Question: How many types of Bank Guarantee have?

Answer: Bank Guarantee have two types which are following:

Direct bank guarantees: that have the issuing bank guarantee one’s of its customer’s obligations to a third party

Indirect bank guarantees: It issued in favor of a second bank which has issued a guarantee on behalf of the of the original’s bank’s customer. With an indirect guarantee, a second bank is involved.

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