„Bank Guarantee“

An indemnity letter in which the bank commits itself to pay a certain sum if a third party fails to perform or if any other form of default occurs. One use is when a bank wants a carrier to release a shipment which it has financed but the original bills of lading are not yet available for surrender to the carrier.

Mann, B. S. (2009). Guide to Letters of Credit and Trade Finance. Singapore: World Scientific Publishing Co.