Guarantee Transfer

Guarantee Transfer refers to the act of the beneficiary of a guarantee transferring all or part of its rights under the guarantee to a third party. It is commonly used in international trade when the original beneficiary (such as an intermediary) needs to transfer the right to receive payment to the actual supplier or financier. Use cases include: intermediaries facilitating transactions but unwilling to occupy their own credit lines, assignment of receivables in supply chain finance, and change of beneficiary of bank guarantees. Precautions: The transfer of a guarantee must obtain the explicit consent of the guarantor (bank), and the guarantor's liability typically does not increase after transfer; the transfer must comply with the guarantee terms and applicable laws (such as URDG758). Unlike 'guarantee assignment', transfer is the transfer of the beneficiary's rights, not a change in the guarantor's obligations; compared to 'guarantee issuance', transfer does not create a new independent guarantee, but only changes the ownership of rights. In practice, beware that transfer without bank consent may render the guarantee invalid.