Expiry date of a guarantee
Reasons for expiry
1. Ordinary expiry:
If the beneficiary has not made a claim by the date specified in the expiry clause of the guarantee document, the guarantee will expire. This applies irrespective of whether the guarantee document was returned to the bank or not.
2. Payment of guarantee amount:
In the event of the definitive and final settlement of the guarantee amount due to a claim by the beneficiary, the guarantee will expire.
3. Premature cancellation:
Formal discharge by the beneficiary.
1. Expiry date:
Expiry of the bank guarantee issued by the guaranteeing (foreign) bank to the beneficiary.
Expiry of the counter-liability and counter-guarantee of the initiating (Swiss) bank in favour of the guaranteeing foreign bank (15 to 30 days following the expiry date).
2. Expiry of counter-liability and -guarantee:
Some countries do not allow time-limits for counter-guarantees from the initiating bank. In this case, the obligations of the initiating (Swiss) bank do not expire until the bank is discharged definitively and in full by the guaranteeing (foreign) bank.
3. Payment of guarantee amount:
If a claim is made under the guarantee by the guaranteeing bank or the end-beneficiary, it will expire when the guarantee amount has been definitively paid by the principal's bank.
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