Document background
The Bank Counter Guarantee is a critical instrument in international banking and trade finance, particularly under Austrian jurisdiction. It is used when a bank (typically in one country) issues a guarantee on behalf of its client, but requires backing from another bank (often in the client's country) through a counter-guarantee. This document type is essential when the original beneficiary's bank requires additional security or local regulatory requirements necessitate a local bank's involvement. The counter-guarantee must comply with Austrian banking laws, including the Bankwesengesetz (BWG) and relevant EU regulations, while often incorporating international banking practices such as the ICC Uniform Rules for Demand Guarantees. The document specifies critical elements including the counter-guarantee amount, validity period, trigger events for payment, and compliance requirements.
