The Legal Regime of Syndicated Bank Guarantees
Author : Tamar Gogolashvili 30/09/2026
Introduction. Syndicated bank guarantees are widely used in modern international financial practice to secure large-scale infrastructure, investment, and commercial projects. This instrument enables banks to share the risks associated with bank guarantees and to support obligations that may be difficult for a single financial institution to undertake independently. Since the Civil Code of Georgia does not contain specific provisions governing syndicated bank guarantees, the subject is of particular importance from both theoretical and practical perspectives.
Methods. The research is based on normative-dogmatic, comparative legal, systemic, and functional methods of analysis. The study examines the provisions of the Civil Code of Georgia regulating bank guarantees, the ICC Uniform Rules for Demand Guarantees (URDG 758), international legal doctrine, ICC Banking Commission Opinions, and relevant case law of the Supreme Court of Georgia. The method of legal analogy has also been employed where appropriate.
Results. The research demonstrates that both joint and several models of syndicated bank guarantees are, in principle, compatible with the existing provisions of the Civil Code of Georgia. It was established that the principle of independence of the guarantee retains its fundamental significance even within a multi-bank structure, while the right of recourse constitutes a central legal mechanism of syndicated guarantee arrangements.
Conclusions. The findings confirm that the current legal framework in Georgia, based on the principle of freedom of contract, allows for the use of syndicated bank guarantees. However, it does not provide a comprehensive and predictable regulatory regime for this institution. Therefore, it is advisable to introduce specific provisions into the Civil Code of Georgia defining the concept of a syndicated guarantee, its principal models, the legal status of the agent bank, the rights and obligations of participating banks, as well as mechanisms governing recourse claims and internal settlement procedures.
Keywords: Syndicated guarantee, URDG 758, Right of recourse, Agent bank, Joint and several liability, Georgia.
Article DOI: https://doi.org/10.55367/QWSY5304