Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
case study on bank guarantee 2
A bank guarantee has to be paid on invocation by the

beneficiary. At that time the bank has a balance of Rs.3
lacs (Fixed deposit) as collateral security and not
substantial balance in the current account of the party. The
claim amount is Rs.5 lacs.

a.. The bank will close Fixed deposit and make payment

b.. For the balance amount the bank can request the
beneficiary for some more time

c.. The bank need not honour, since the balance of the
collateral security will not be sufficient to meet the claim

d.. None of these
Not sure but ans may be option a.

Users browsing this thread: 1 Guest(s)