Guarantee Copy Condition

Guarantee Copy Condition is a special clause in bank guarantee business in international trade, meaning the beneficiary can demand payment or performance of guarantee obligations from the guarantor bank by presenting a copy of the guarantee instead of the original. Normally, the original guarantee is the only valid document for claims, but if the contract or guarantee explicitly stipulates a 'copy condition', the copy has equal effect. It is often used in long-term cooperative, high-trust transactions, or to speed up claims and avoid delays in mailing the original. Precautions: The beneficiary must confirm whether the guarantee text explicitly allows claims by copy, otherwise the bank may refuse payment; also guard against forgery or reuse of the copy, and it is advisable to add 'one-time claim only' or require the copy to be verified by the bank. Compared with the 'original condition', the copy condition is more convenient for the beneficiary but riskier for the guarantor bank, so banks often require additional counter-guarantees from the applicant. Unlike 'negotiation against copy', which is mostly used in letters of credit, the guarantee copy condition is specific to guarantees.