Can a guarantee be cancelled prior to expiry if the guarantor has retained the original document?
No. A guarantee is not a security paper (such as a share or a bond, for instance). In order to cancel a guarantee prior to expiry, the guarantor would also require some form of evidence that the beneficiary had surrendered the original guarantee, e.g. a covering letter from the beneficiary stating that the guarantee had lapsed or was no longer required. Equally, a duly signed, legally valid letter of discharge from the beneficiary will normally be sufficient for the purposes of cancellation prior to maturity. In this instance, it is not essential for the original document to be surrendered.
