Document background
The Trade Finance Bank Guarantee is a crucial instrument in international trade and commercial transactions under Hong Kong law. It provides security to beneficiaries when conducting business with unknown or overseas counterparties, particularly in cross-border transactions. The document is commonly used in various scenarios including bid bonds, performance bonds, advance payment guarantees, and financial guarantees. It must comply with Hong Kong's Banking Ordinance and related regulations, while often incorporating international banking practices such as the Uniform Rules for Demand Guarantees (URDG 758). The guarantee can be structured as either a primary obligation of the bank or a secondary obligation contingent on the principal's default, depending on commercial requirements and the underlying transaction.
