This refers to bank guarantees to be issued through one of the foreign banks against instruction from foreign principals to local beneficiaries. Issuances of guarantees to local beneficiaries remain the sole discretion of Dashen Bank. Guarantees may take two forms: –
a) Guarantees that may request counter guarantee of Dashen Bank. This type of guarantees will be issued upon fulfilling the following conditions: –
It must be issued by one of our a/c maintain correspondent banks.
Text of the guarantee must state the following regarding claims: –
They will be paid on first demand of presentation of claims.
They will be paid notwithstanding contestations from any one the parties involved in underlying contracts.
Guarantees should be governed by Ethiopian Law and place of jurisdiction should be Addis Ababa.
Text should be free from conditional statement(s) regarding settlement of claims (if any).
b) Guarantee which calls issuance without any commitment/obligation of Dashen Bank. These kinds of guarantees will bear no obligation from the part of Dashen Bank. Claims if any will be paid only after transfer is received from principal.