Guarantee Confirmation

Guarantee Confirmation refers to the act by which a bank, insurance company, or guarantee institution, at the request of the applicant, verifies and confirms the authenticity, validity, and terms of an already issued guarantee, or at the request of the beneficiary, performs operations such as countersignature or reissuance of the guarantee. It is commonly seen in international trade, engineering contracting, shipbuilding, and other scenarios. When the beneficiary (such as an importer or project owner) doubts the creditworthiness of the issuing bank of the original guarantee, or when the contract requires the guarantee to be confirmed by a local bank, the applicant will be required to arrange guarantee confirmation. Precautions include: the confirming bank usually does not assume independent payment liability and only confirms the apparent authenticity of the guarantee; confirmation may incur additional costs; if it is a reissued guarantee, the confirming bank may assume independent liability, and the type of guarantee (conditional/unconditional, on-demand/accessory) must be clarified. Unlike 'Guarantee Notification,' notification only transmits documents without verifying content; unlike 'Guarantee Increase,' increase refers to raising the guaranteed amount or extending the validity period. In practice, it should be ensured that the confirmed content is consistent with the underlying contract to avoid conflicts in terms.