shankce_logo


Home > Financial Instruments > Discharge of a Bond

Discharge of a bond

A bond should always be discharged by returning the original bond to the Contractor thru a written letter addressed directly to the bank stating that there is no claim against the bond, under advise to the Contractor. In practical situations, it is not uncommon to find Clients discharging bonds thru a letter addressed to the Contractor. Strictly speaking discharging a bond in this manner could be rejected by the bank since the Client is the beneficiary under the bond, and discharge of a bond without a claim should come from the Client directly to the bank..

       Designed & Maintained by Creative Designer