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5. Prohibition against Assignment A Banker s Guarantee shall not be assignable due to the following reasons:To avoid the bank losing its right of set-off vis- -vis the beneficiary To avoid the bank paying to the wrong party To reduce administrative uncertainties if there are multiple assignments made If a Banker s Guarantee is silent on assignment, it can be assigned by the beneficiary. In view of the above-mentioned prohibition, BG issued is usually on a non-assignable basis. 6. Governi.

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