What is the Purpose of Message/Handling Type in Guarantees?

The Guarantees business sector covers all transactions related to the processing of an undertaking (Guarantees and Standby L/Cs).

For outgoing (direct and indirect) guarantees, the 'standard' guarantee texts specified by the legal department are stored in the static data in the Advanced Text section (see DBIATTX) .
These are divided according to the type of guarantee (e.g. advance payment guarantee, performance guarantee), legal form, language and frequency of use, and they can then be used as often as required for issuing undertakings.

The following types of processing are supported in the application:

Issuance of undertaking (ISSU)
Issuance of counter-undertaking (ISCO)
Issuance of counter-counter-undertaking (ICCO)
Advice and confirmation of issued undertaking (ACNF)
Advice of issued undertaking (ADVI)
Guarantee in own favor (Received Guarantee)

Issuance of Undertaking (ISSU):

A direct undertaking is issued by a bank on the basis of an order from one of its own customers or on the basis of an order from another bank in favor of the beneficiary.
The direct undertaking is advised to the beneficiary either direct or via an advising bank in the beneficiary's country.

Issuance of counter-undertaking (ISCO):

The 'Issuance of a counter-undertaking and request to issue a local undertaking' (also known as indirect undertaking) arises when a bank requests another bank to issue an undertaking in favor of a beneficiary. This request is secured, as the requesting bank issues a counter-undertaking in favor of the bank, which is asked to issue the final undertaking in favor a the ultimate beneficiary.

Issuance of counter-counter-undertaking (ICCO):

An 'Issuance of a counter-counter-undertaking (ICCO) is a request to issue counter-undertaking for a local undertaking, also known as indirect undertaking.
It arises when a bank (issues a counter-counter undertaking) in favor of another bank. This bank issues a counter-undertaking in favor of a local bank. And this local bank will then issue a local undertaking in favor of its clients.

Advice and confirmation of issued undertaking (ACNF):

'Advice and confirmation of issued undertaking' is used if a bank receives a guarantee (or a standby L/C) issued by another bank by order of one of their customers. The bank is instructed to advise the beneficiary of the undertaking in accordance with the instructions received from the issuing bank or an advising bank and to add its own confirmation.

Advice of issued undertaking (ADVI):

'Advice of issued undertaking' is used if a bank receives a guarantee (or a standby L/C) issued by another bank by order of one of their customers. The bank is instructed to advise the beneficiary of the undertaking in accordance with the instructions received from the issuing bank without incurring any obligation.

Guarantee in own favor (Received Guarantee):

Received guarantees are used when the bank using the application receives a guarantee in their own favor issued by another bank by order of their client.

Depending on the selection of ‘Purpose of Message’, the values for the field ‘Handling Type’ will be defaulted.

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