Guarantee Photocopy Condition

The Guarantee Photocopy Condition is a common payment or performance guarantee clause in international trade, typically found in letters of credit or independent guarantees. Its core meaning is that the beneficiary may demand payment or claim from the bank by submitting only a photocopy of the guarantee (not the original), provided that the original guarantee has not been used or revoked. This condition is often seen in advance payment guarantees, performance guarantees, etc., especially when the beneficiary fears loss or delay in mailing the original guarantee and requests its inclusion. When using this condition, note: the bank must confirm that the original guarantee is still in its custody and has not been paid out; otherwise, it may face the risk of duplicate payment. Meanwhile, the issuer must clarify the legal effect of the photocopy to avoid disputes arising from loss of the original. Compared with the 'Guarantee Original Condition', the photocopy condition is more convenient for the beneficiary but carries higher risk for the bank, thus usually requiring the applicant to provide a counter-guarantee or restrictive conditions.