Document background
The Bank Guarantee Discharge Letter is a critical document used when a beneficiary wishes to formally release a bank from its obligations under a bank guarantee that is no longer required or has served its purpose. This typically occurs when the underlying obligations secured by the guarantee have been fulfilled, the commercial relationship has concluded, or the guarantee has expired. Under Dutch law, such discharge must be explicit and unequivocal, with proper authorization from the beneficiary. The document must include specific details about the original guarantee, clear discharge language, and may require supporting documentation such as completion certificates or corporate authorizations. It serves as crucial evidence for the bank to terminate its contingent liability and update its records accordingly.
