Letter of Credit Forum

Hello Hanjin

If you are talking about a guarantee for a lost bill of lading, then technically the bank should have no exposure unless they have an unsecured loan backing the guarantee.
The guarantee should be for a specified amount (often 200% of the purchase price or – if known – 200% of the customs c.i.f. value of the goods).
The underlying security, as such, should be the importer’s not the bank’s.
However, the devil is in the detail.

Cheers

phill
“...in the kingdom of the blind; what you see is what you get...”