Kuwait Court of Cassation principle number 1568

Letter of guarantee. Its definition. Independence of the relationship between the bank and the customer from the latter's relationship with the beneficiary. - Issuance of a letter of guarantee. Does not create for the customer a right to its value or represent a right for him against the beneficiary. Reason: the amount of that letter constitutes funds owned by the bank until paid to the beneficiary. Effect thereof. The customer may not claim them, and his creditors may not attach them in the hands of the bank or the beneficiary, into whose patrimony they enter only if he requests them within the limits of the bank's obligation. Example.