These instruments usually carry an undertaking on the part of the Bank that if the customer defaults on the underlying transaction, the beneficiary will be refunded or compensated by the Bank to the extent of its undertaking on the presentation of pre-determined documents. Also known as direct credit substitutes, the Bank substitutes its credit for that of its customer when bonds, guarantees and indemnities are issued. The instruments are contingent liabilities as they become due only at the occurrence of an event. The Bank’s liability ceases only on return of the original instruments issues by the Bank and/or the receipt of a formal release by the beneficiary of obligations under the instrument at which time reversal entries are passed. The Bank’s liability ceases also upon expiration of a stated validity period. These are off-balance sheet items traded by the Bank in their various forms and are mostly on transactional basis. Some of the contingent liabilities facilities available at GEXIM to our cherished customers include; Supplier Credit Guarantee, Letters of Credit and Loan Guarantee.