What is the First Demand Guarantee?
What is the First Demand Guarantee?
The first demand guarantee is a security which commits the guarantor (in this case the borrower), in the context of an bond subscribed by a third party (in this case the investor), to repay the sum due, either on the first demand of the creditor, or according to previously agreed terms. This guarantee is on the same level as a personal guarantee when given by a company.
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Updated on: 05/04/2022
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