Bank Letter of Guarantee ( LG )

An LG is a written undertaking given by a bank to cover various situations to support exporters or contractors. It is used as a protection against non-fulfilment of another party’s obligations. A Letter Guarantee is an irrevocable obligation, non-cancellable, by the bank to pay an agreed sum in case of the failure or default on the part of the party, on whose behalf it is issued, in fulfilling or performing a particular obligation