Document background
The Indirect Bank Guarantee is a specialized financial instrument commonly used in international trade and complex financial transactions under Austrian law. It creates a chain arrangement where a local bank (Guarantor Bank) issues a guarantee at the request of another bank (Instructing Bank) on behalf of the Principal. This structure is particularly useful when the beneficiary requires a guarantee from a bank in their jurisdiction, but the Principal's relationship bank is located elsewhere. The document includes comprehensive provisions for guarantee issuance, demand procedures, payment terms, and counter-indemnity obligations, all compliant with Austrian banking regulations and international banking practices. It's essential for transactions requiring local bank presence while leveraging international banking relationships.
