Guarantee Reissue

Guarantee Reissue refers to the act, in international trade, of the original issuing bank or guarantor reissuing a guarantee with the same content or with modifications to replace or supplement the original guarantee, due to expiration of the original guarantee, incorrect terms, a request for change by the beneficiary, or reasons of the issuing bank itself. It is commonly seen in engineering projects, bulk commodity transactions, or long-term supply contracts. When the validity period of the original guarantee is insufficient to cover the contract performance period, or when the beneficiary considers that the format, amount, currency, etc. of the original guarantee do not meet requirements, the applicant will be required to arrange a reissue. Notes: Reissue is not a simple extension; it may involve new issuance fees, occupation of margin, and continuity of legal effect. It is necessary to clarify whether the original guarantee is cancelled to avoid double guarantee; the terms of the reissued guarantee should be consistent with the contract, and attention should be paid to the connection between the reissue time and the expiry date of the old guarantee to prevent a guarantee vacuum. Unlike 'guarantee amendment', reissue usually means issuing a completely new guarantee rather than endorsing amendments on the original guarantee; compared with 'guarantee extension', reissue may change terms other than the period.