„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.

Source:

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