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Web alert: Lloyd's Standard Salvage and Arbitration (LSSA) Clauses amended
News & Insights 16 April 2014
This amendment will allow non-United Kingdom underwriters to provide security by way of a Lloyd’s standard guarantee
The requirement contained in clause 4.5 of the LSSA Clauses that “...security shall be provided...by persons, firms or corporations either acceptable to the Contractors or resident in the United Kingdom and acceptable to the Council (of Lloyd’s)...” has been amended such that there is no longer a requirement that the guarantor be “resident in the United Kingdom". All other terms and conditions of clause 4.5 remain unaltered.
This amendment will allow non-United Kingdom underwriters to provide security by way of a Lloyd’s standard guarantee. However, Lloyd’s' requirement that the guarantee is insured at Lloyd’s against the guarantor’s default remains in place.