Covid-19 coronavirus: disputes under lease agreements and bank guarantees
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Please refer to our latest publication written by Marek Neumann on when landlords can call on bank guarantees and how banks should react.
The article discusses the strained relations between landlords and tenants following the outbreak of the COVID-19 pandemic and their impact on banks’ obligations under first demand rental guarantees. They discuss the following issues: whether the Polish anti-crisis legislation prevents calls under rental guarantee, whether and in what circumstances a tenant could invoke the fraud exception to obtain a restraining order against the bank, and issues for banks to consider before payment to avoid liability vis-à-vis either the landlord or the tenant, or reputational risk.