How to Check the CUSIP Number for a Bank Guarantee

Bank guarantees are a type of lending instrument used by banks, generally to other banks, that improve the credit rating of the bonds. The debtor is generally a commercial outfit that uses the proceeds to expand their business activity. Each bank guarantee that is issued in either the U.S. or Canada comes with a unique code called a CUSIP that is used to identify its origin. The majority of foreign banks that use bank guarantees also use a similar CUSIP that is also searchable.

Instructions

1. Identify the CUSIP, which stands for Committee on Uniform Securities Identification Procedures. The CUSIP is a 9-digit alphanumeric code that is located on the top of the bank guarantee and usually follows the term "CUSIP." The nine digits are divided into three sections. The first six characters identify the lending institution. The next two digits are used to identify the type of issue and are unique to each separate bank guarantee. The last digit is used as a check digit.

2. 

   Log onto a website that offers either CUSIP validation or verification services. A site such as cusip.com offers these services either on a one-time basis or as an ongoing membership service.

3. 

   Follow the instructions on the chosen website, which will direct you to enter the CUSIP into their checking system, which will result in returned information. Most of these websites also contain a contact phone number should you run into difficulties.

Tips & Warnings

• Should the bank guarantee you have be from a foreign lending source (not U.S. or Canadian in origin), you can still check the CUSIP as "a similar system is used to identify foreign securities (CUSIP International Numbering System)" and is also available online, according to the U.S. Securities and Exchange Commission.

References

• Teen Analyst: Glossary
• U.S. Securities and Exchange Commission: CUSIP Number
• The Free Dictionary: Bank Guarantee

Resources

• CUSIP Global Services