CAN A BANK BRANCH ISSUE A GUARANTEE BACKED BY ITS OWN HEAD OFFICE’S COUNTER-GUARANTEE? An unusual guarantee structure raises an important question: Can a bank obtain legal protection from a counter-guarantee issued by another part of the same bank? Mr. Old Man shares his views on the legal and credit risks involved. Question Dear Mr. Old Man, Our bank is considering a transaction in which our head office would issue a counter-guarantee, while our … Read More