Question

When does the bank make payment of a Bank Guarantee?

• A. When the beneficiary invokes the guarantee and makes demand to the bank
• B. When the bank is satisfied that default has occurred
• C. Only when court orders payment
• D. When the customer gives consent to pay

Answer 1

Answer:

A. When the beneficiary invokes the guarantee and makes demand to the bank

A bank guarantee is payable on demand without requiring proof of default.