Answer
GA Security = G.A Bond + Underwriter Guarantee / Bank Guarantee / Cash deposit. G.A Security is taken before release of the cargo at destination i.e. the Port of discharge.
GA Bond- It is a compulsory requirement in a G.A security given to secure the release of cargo.
G.A Bond is a contract enforceable by law between all stakeholders that they agree to pay their contribution at the time of a G.A Incident and is not time barred. e.g- Lloyd’s Average Bond.
When GA is declared, the Shipowner has a possessory lien on the cargo which he is entitled to maintain until he is secured for any potential demand under a G.A adjustment. Such security is usually issued by the cargo owners in the form of a bond which is then counter-secured, with the provision of a guarantee, usually by an undertaking from the insurer.
One of the below guarantees are required along with G.A Bond-
1.Underwriter Guarantee- It is the financial security for the payment of G.A contribution of the cargo interests by the Cargo Insurance company.
2.Bank Guarantee- This is required when the cargo is uninsured or when cargo Insurance company is doubtful to pay their due contribution.
3.Cash deposit- If the cargo is uninsured or less reputed cargo Insurance company. Cash deposit in the ‘Escrow Account’ acts as a security which cannot be withdrawn till the G.A adjuster executes and settles all the claims. If the cargo Insurance company pays the G.A contribution, then this Cash deposit is reimbursed to the Cargo owner.