Guarantees are arguably the most essential part of a financial transaction, especially when lenders are institutions such as multinational financial services companies who rely on such collateral to carry out their business, e.g., credit facilities, bilateral agreements or, more commonly among us, mortgage deals.
Being the essential tool that they are, guarantees come in many shapes and forms, but one of the key distinctions from a lender’s perspective is often whether it is “specific” (in that it guarantees only obligations arising…
