Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 14 JUNE 2017

Dont risk not collecting on your performance bond or bank guarantee

Pointon Partners
Explore more from Pointon Partners

If the name of the favouree is listed incorrectly in the documentation, the bank may refuse to honour the guarantee.

AustraliaFinance and Banking
Nicholas Brand
Nicholas Brand
Lachlan Chisholm (Formerly With Pointon Partners)
Lachlan Chisholm (Formerly With Pointon Partners)
Author LinkedIn connections

As a result of the High Court of Australia's recent decisionin Simic v New South Wales Land and Housing Corporation [2016] HCA 47, those providing performance bonds or bank guarantees in respect of property-related matters are on notice that if the name of the person to benefit from the documentation is misstated, this will preclude that person from calling on the performance of the bond or bank guarantee.

In this case, the Australia and New Zealand Banking Group Ltd (ANZ) refused to honour a performance bond due to a misstatement in the documentation, causing the New South Wales Land and Housing Corporation to expend large amounts of time and money in applying to Court to have the error rectified.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Australia's Enhanced Substantial Holding Disclosure And Beneficial Ownership Disclosure Regime Comes Into Effect From 4 December

Australian financial markets face a fundamental shift in disclosure requirements from December 2026, as new rules expand substantial holding obligations beyond traditional voting interests to capture derivative positions and economic exposure. Market participants must now navigate complex calculations involving physically settleable derivatives, cash-settled instruments, and offsetting short positions—with no grandfathering for existing holdings.
AustraliaFinance and Banking
K&L Gates
K&L Gates
Article

New Payment Models Face A Broader Licensing Regime

Australia's payment services landscape is undergoing a fundamental regulatory transformation with the introduction of new legislation that shifts focus from specific technologies to the functions and activities performed by payment service providers. The Treasury Laws Amendment Bill 2026 will replace the existing non-cash payment facility framework with a comprehensive licensing regime that distinguishes between payment products and payment services, potentially capturing previously unregulated payment
AustraliaFinance and Banking
McCabes
McCabes
Article

Australia's Updated Financial Innovation Strategy

The Australian Government has unveiled its Financial Innovation Strategy, introducing a new Financial Innovation Committee and overhauling the Enhanced Regulatory Sandbox framework to better support emerging businesses testing innovative financial products. The strategy encompasses reforms across consumer data rights, digital assets, tokenised infrastructure, and regulatory frameworks designed to position Australia as a leader in financial innovation.
AustraliaFinance and Banking
K&L Gates
K&L Gates
Article

Counterfeit Imports – Tougher Penalties At The Border

Australia strengthens its response to counterfeit goods importation through new legislation that creates strict liability offences and enables infringement notices at the border. The amendments aim to make counterfeit importing unprofitable by ensuring penalties and seized goods exceed potential profits. How will these changes impact intellectual property rights holders and importers operating in Australia?
AustraliaIntellectual Property
Pointon Partners
Pointon Partners