Guarantee Original Condition

The Guarantee Original Condition is a key clause in bank guarantee business in international trade. It means that the beneficiary (usually an exporter or contractor), when making a claim or demanding payment, must submit the original guarantee to the guaranteeing bank as a precondition. This term is commonly found in documentary letters of credit, independent guarantees, or standby letters of credit, especially in demand guarantees, where the bank must pay only upon presentation of the original guarantee and a claim complying with the guarantee terms. Use cases include: international engineering contracting, bulk commodity trade, complete equipment export, etc., where the beneficiary needs to claim against the original guarantee. Notes: The beneficiary should keep the original guarantee safely; if lost, it may need to report the loss or provide an indemnity; the original usually must be presented through banking channels and cannot be sent by the beneficiary itself; if the guarantee stipulates an 'original condition', copies or duplicates are invalid. The difference from a 'copy condition' or 'telex claim condition' is that the latter allows claims against a copy or SWIFT message, with lower risk. The guarantee original condition is unfavorable to the beneficiary because it relies on the circulation of paper documents and may delay receipt of payment.