Obligations of banks under guarantees: Court Practice

Obligations of banks under guarantees: Court Practice

Within the system of securing performance of obligations, a bank guarantee holds a distinct position as one of the most reliable and highly liquid instruments. Its demand in modern commercial transactions is driven by its specific legal nature, which enables the creditor to obtain prompt monetary compensation while minimising risks associated with the debtor’s bad faith conduct.

Read more in the article by EVERLEGAL lawyer for LIGA ZAKON at the LINK.

In focus:

• the legal framework governing bank guarantees;
• the structure of a guarantee as a security instrument;
• a new approach to the grounds for obligations arising under a guarantee;
• determining an effective remedy for protecting the principal’s rights;
• the admissibility of prohibiting payment under a guarantee as an interim measure;
• alignment of Ukrainian court practice with international approaches.

Our expert: Maksym Popelchuk, Junior Associate at EVERLEGAL
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