This is usually a full-fledged bank, although it can initially be issued by the applicant. In this case, we speak of a counter-guarantee. In practice, the applicant`s bank issues the counter-guarantee to the beneficiary`s bank and orders it to provide its own guarantee to the beneficiary. A counter-guarantee can be defined as: “An obligation that the counter-guarantor gives to another party that designates that party as the beneficiary of the issuance by that other party of a local guarantee to be provided to the beneficiary in the underlying contract/relationship”. These separate and different guarantees offer payment when presenting a claim for payment. If the claim is to be made under a local guarantee, the guarantor will submit his claim under the counter-guarantee. This is a common practice in many countries in the Middle East. In this case, the guarantor is liable to the guarantor and the guarantor to the beneficiary. The counter-guarantor undertakes to reimburse the guarantor when a claim is in the process of being enforced under the guarantee. . . .