Counterindemnity

An indemnity issued in respect of a Demand Guarantee by:

  • The account party (analogous to an Applicant under a Letter of Credit) in favour of that account party's bank and any other bank issuing the Demand Guarantee on the instruction of that account party's bank
  • The account party's bank in favour of any intermediary bank between the account party's bank and any bank issuing the Demand Guarantee, and
  • Any intermediary bank in favour of the bank issuing the Demand Guarantee, in each case in respect of any amount paid under the Demand Guarantee by the account bank, any intermediary bank or the bank issuing the Demand Guarantee (as applicable).

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